US bond yields helped the US dollar recover from its 3-years lows and bring the dollar index to 90.39, its highest level since January 23. Bond yields have been rising strongly over the past two weeks amid expectations that the ECB is on course to tighten its monetary policy.
The Senate leaders reaching a deal on funding the budget also supported the US dollar in its rise. This agreement introduced a short-term spending bill that stops the government shutdown before the deadline this evening, and will also extend the debt ceiling until 2019.
US stocks closed lower yesterday after an early rally, signaling investor concern over recent market volatility and fears of further trouble. The Dow Jones industrial average fell from a two-day high of 25,293 points to close at 24,293 points.
The New Zealand dollar fell against the US dollar to its lowest level in a month at 0.7170, after the Reserve Bank of New Zealand kept interest rates unchanged at 1.75%. The bank said that easing policy, rising trade, government spending and population growth will strengthen economic growth.
Oil prices fell to a six-week low as US crude oil production surged to record highs and the North Sea's largest crude pipeline reopened. US crude fell to $61.50 a barrel, while Brent crude fell to $65.30 a barrel.
Sterling Pound has climbed sharply after BoE kept rates unchanged at 0.5%, as monetary policy minutes suggests faster and earlier rate hikes than expected in November. Mark Carney, BoE governor during the press conference has confirmed that any rate hike will be gradually and depending on economic data.
