The greenback is on track for the best month since Sept. 2022 as the resiliency of the US economy keeps Federal Reserve rate-cut bets at bay. The Japanese yen strengthens 1% after the Bank of Japan signaled that it is on track for more interest-rate hikes.
The Bloomberg Dollar Spot Index drops 0.2%, monthly gain at 3%.
Fed's preferred measure of underlying US inflation posted its biggest monthly gain since April, bolstering the case for a slower pace of interest-rate cuts following last month's outsize reduction.
USD/JPY fell 1% to 151.94 after the Bank of Japan comments
BOJ comments open the door for a rate hike in December or earlier next year, according to Takafumi Onodera, who's in charge of sales and trading at Mitsubishi UFJ Trust & Banking Corp. in New York.
USD/JPY can move toward 155 if nonfarm payrolls exceeds expectations on Friday, he said.
GBP/USD fell 0.6% to 1.2882, weakest level since mid-August.
UK bonds tumbled, extending a selloff triggered this week by the Labour government's plans for borrowing and fiscal stimulus over the coming years.
EUR/USD climbs 0.2% to 1.0873; consumer prices rose 2% from a year ago in October, up from 1.7% the previous month.
AUD/USD curbed its earlier drop to trade little changed at 0.6571
For October, the Australian dollar was among worst performer in G-10 against the greenback.
Source : Bloomberg
