LONDRES/Singapore, 27 oct: The dollar rose on Thursday, after falling to a one-month low in a choppy session ahead of the expected rate hike by the European Central Bank (ECB).
* The greenback has fallen in recent days as investors have digested signs that the US Federal Reserve is considering slowing its aggressive rate hikes in December. However, the dollar reversed course on Thursday in what analysts saw as a natural rebound after a sharp drop.
* On Thursday, the euro hit an over-month high of $1.0094, before slipping on a strengthening dollar, down 0.47% to $1.0032 ahead of the ECB’s decision to 1215 GMT.
* The central bank is expected to raise the deposit rate by 75 basis points (bps) to 1.5%, the highest level in 13 years. It is also likely to cut a key subsidy to commercial banks.
* “I think profit-taking at this level is not unheard of,” said Alvin Tan, head of Asia currency strategy at RBC Capital Markets. “Since Monday, the euro-dollar is up about 2.2%, so we’ve had a pretty big move in the dollar over the last two days.”
* Against a basket of currencies, the dollar was up 0.54% at 110.14, after falling to a one-month low of 109.53 early on Thursday. Sterling was down 0.59% at $1.1561.
* The Japanese yen was up more than 0.5% in early London trading, hitting a high of 145.11 per dollar. However, it also reversed gains later in the session and was broadly flat at 146.34.
* Trading has been volatile following alleged government interventions to boost the struggling currency on Friday and Monday.