Commodity currencies at multi-month highs, sterling firm on BoE rate hike bets
The dollar’s index, having eased 0.3% so far this week, stood at 93.602, near its lowest level since late September.
Leading gains against the dollar were commodity currencies as oil prices hit their highest levels in many years.
The British pound stood at $1.3828, just shy of its Tuesday high of $1.3834, its highest level in over a month.
Against the euro, sterling was near its highest levels since February 2020, at 84.26 pence per euro.
The UK currency held momentum due to rising expectations of BoE rate hike.
British overnight indexed swaps are pricing in about 80% chance of a 0.25% rate hike on Nov. 4.
The euro held firm at $1.1652, staying close to Tuesday’s three-week peak of $1.1670.
The positive risk mood weighed on the Japanese yen, often perceived as a safe-haven currency.
The dollar stood at 114.39 yen, near Wednesday’s four-year high of 114.695 yen.
The yen is dented by expectations that its trade deficit could widen as rising oil prices boost its imports bill while its car exports are hampered by chips shortages.
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