The dollar fell and the euro rose on Tuesday amid expectations among traders of a potential interest rate cut in the United States soon, driven by concerns related to local banks there. Meanwhile, a 50 basis point interest rate hike remains a consideration for the European Central Bank in its meeting next week. The euro surpassed $1.10 last night, reaching $1.1062 in early Asian trading, with trading volumes declining due to the holiday in Australia and New Zealand.
In an interview with Politico, European Central Bank Executive Board member Isabel Schnabel stated that a 50 basis point rate increase is not ruled out, and it will depend on data, particularly inflation figures set to be released two days before the May meeting. The euro hit an eight-year high against the Japanese yen at 148.47 yen, as signals from Bank of Japan Governor Kazuo Ueda indicated there is no rush to shift monetary policy. According to data from an electronic brokerage service platform dating back to the early 2000s, the Japanese yen is at its lowest in twenty years against the Swiss franc, recording 151.33 yen for the franc. The Japanese currency stabilized against its American counterpart, at 134.28 yen per dollar in the latest transaction.
