Dollar climbs as markets await Fed, ECB and BoJ policy meetings
The U.S. dollar edged higher against the euro, yen and pound ahead of a series of central-bank meetings and major tech earnings, while equity markets steadied after AI-stock turbulence.
On Tuesday, the dollar rose slightly versus the euro, yen and pound as investors prepared for a busy week of central-bank announcements that will shape global interest-rate expectations. The Federal Reserve, European Central Bank and Bank of Japan are all projected to keep policy unchanged, shifting focus to any forward guidance they may provide. Francesco Pesole of ING highlighted that calmer sentiment around AI-driven stocks allowed the market to reconnect with a broader backdrop of a hawkish Fed and high energy prices, supporting the dollar.
The yen and Swiss franc benefited from safe-haven demand, while the euro slipped, becoming the weakest major currency in October due to energy costs and French bond volatility. Japan's service-inflation data showed a 3.7% year-on-year increase, reinforcing pressure on the BoJ, and Finance Minister Satsuki Katayama warned of possible market intervention. The week will also feature earnings from AI hyperscalers Alphabet, Microsoft and Amazon, which could add further direction to asset prices.
Why it matters
Currency moves and central-bank signals this week will affect borrowing costs, trade and investment worldwide.
In this story
Related stories
3 in this thread