NEWS / Foreign Exchange

Dollar Hits Record Low vs Euro Before FED Verdict

The dollar fell to a record low against the euro on Wednesday on expectations that the Federal Reserve will further lower interest rates at its two-day policy meeting ending later in the session.

The euro rose as high as USD 1.4448 on electronic trading platform EBS, the highest since the launch of the single European currency in 1999.

Oil Slumps over USD 1, nears USD 89 Ahead of FED

Oil fell more than USD 1 to near USD 89 a barrel on Wednesday, deepening its sharp profit-taking retreat from this week's record high on recovering Mexican oil output and an expected rise in weekly U.S. crude stocks.

BOJ Keeps Rates Steady at 0.5 % by 8-1 Vote

The Bank of Japan kept its policy rate target unchanged at 0.50 % on Wednesday as expected, reflecting caution among central bankers over market uncertainty and fallout from problems in the U.S. subprime mortgage sector.

The decision by the BOJ's nine-member board was by a vote of 8-1, with board member Atsushi Mizuno dissenting.

The central bank has kept monetary policy on hold since raising the key overnight call rate target from 0.25 % in February, which was the first hike since July last year.

Aussie Dollar Hits Session High on Strong Data

The Australian dollar rose to a session high of USD 0.9233 against the U.S. currency, closing in on its 23-?? year high of USD 0.9272, after stronger than expected economic data reinforced the prospect of a domestic rate hike early next month.

Australian dwelling unit building approvals for September rose 6.8 %, seasonally adjusted, easily beating market forecasts of a rise of 0.7 %.

Australia private credit rose 1.2 % in September. A Reuters poll showed market forecasts centred on a rise of 1.0 % month-onmonth in total credit.