The US Dollar was broadly higher and touched on a 2-month peak against the Japanese Yen after the Federal Reserve indicated that a December rate hike was still a possibility. The Fed last raised its benchmark rate in June with a 25 basis points hike, with the first this year occurring in March. The news of a potential rate hike surprised markets, especially given that inflation has been fixed below the Fed’s 2% target; one of the Fed’s mandates is price stability. Generally, as expected, the Fed also indicated it would begin trimming its balance sheet next month, reining in the massive $4.5 billion in Quantitative Easing purchases.
As reported at 9:45 am (JST) in Tokyo, the USD/JPY was trading at 112.547 Yen, a gain of 0.20%; the pair had hit a peak of 112.647 Yen while the session trough stands at 112.250 Yen. The GBP/USD is down 0.01% and trading at $1.3493; the pair has ranged from a low of $1.3483 while the peak is at $1.3508. The EUR/USD is down 0.05% and trading at $1.188, off the session low of $1.18640.
Mexican Peso Recovers Despite Catastrophe
The Mexican Peso is edging higher against the US Dollar after Wednesday’s massive earthquake centered in Mexico City. The USD/MXN is trading at 17.79 Mexican Pesos, up 0.11%. The USD/MXN has ranged from a low of 17.77230 Mexican Pesos to a peak of 17.80780 Mexican Pesos.