Sharjah24 – Reuters: The Australian and New Zealand dollars gained ground on Monday ahead of expected rate hikes from their respective central banks later in the week, while the dollar slipped against a basket of currencies.
The Aussie AUD=D3 was up 0.19% to $0.64230, away from a 2-1/2-year low of $0.63635 hit last week, while the kiwi was 0.44% higher at $0.56280, similarly pushing away from last week's trough of $0.55645.
The Reserve Bank of Australia and the Reserve Bank of New Zealand meet on Tuesday and Wednesday, respectively, with markets expecting both to lift their cash rate by 50 basis points, though focus will also be on the tone of policymakers.
Sterling GBP=D3 fell 0.19% to $1.1144, but remained off its record low of $1.0327.
The pound rebounded strongly at the end of last week when the Bank of England said it would buy as much government debt as needed to restore order after new Prime Minister Liz Truss's tax cutting plans triggered financial chaos.
The euro was up 0.11% to $0.98105, supported by expectations for another jumbo European Central Bank rate hike later this month following a red-hot inflation print.
Data on Friday showed that euro zone inflation zoomed past forecasts to hit a new record high of 10.0% in September, beating expectations for a reading of 9.7%.
U.S. non-farm payrolls are due at the end of the week, while a flood of manufacturing PMI data out later on Monday will also give insight into the global economic outlook.
The U.S. dollar index =USD fell 0.12% to 112.10, while the yen JPY=EBS firmed at 144.79. Dollar/yen has held steady below the 145 level following an intervention by Japan to shore up the fragile currency.
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