The euro rose 0.09% to $1.0554 after falling 0.5% yesterday, Wednesday, returning to its lowest level last week at $1.0496, which is its weakest level against the dollar since October 2023.
Elsewhere, Ukraine fired a barrage of British Storm Shadow cruise missiles at Russia on Wednesday, the latest new Western weapon it has been authorized to use against Russian targets, a day after it fired US Atakmus missiles.
“The conflict between Russia and Ukraine is escalating, which is further eroding sentiment towards the euro along with the potential for trade tariffs,” said City Index’s Simpson, another “bullish signal” for the dollar index given the heavy weight of the euro.
The British pound was trading at $1.2652, up 0.04%.
Bank of Japan Governor Kazuo Ueda said on Thursday that the central bank would “seriously” take foreign exchange rate movements into account when compiling its economic and price forecasts.
He noted that there is still a month until the Bank of Japan’s next policy meeting in December, adding that there will be more information to digest by then.
The dollar gave up some gains against the yen, falling 0.51% at 154.63 yen after Ueda’s comments.
Market prices are almost evenly split on December’s increase amid the yen’s recent decline towards 38-year lows touched in July.
The currency pair rose above the 156 mark last week for the first time since July, raising concerns that Japanese authorities may take further steps to support the yen.
