USD is stable near the highest level in 10 months and continues to pressure JPY

The dollar stabilized near its highest level in ten months against a basket of currencies on Thursday, keeping the yen near an area that may require intervention by the authorities to support it, amid investors’ assessment of the impact of positive US economic data and new statements from Federal Reserve (US Central) officials.

As the dollar maintained its strength, the euro and pound found it difficult to recover from multi-month lows recorded on Wednesday.

The Australian and New Zealand dollars trimmed their losses, ignoring retail sales data in Australia that came below expectations.

Minneapolis Fed President Neel Kashkari is one of the voices at the Fed warning markets about the possibility of raising interest rates, and he said on Wednesday that ample evidence of continued strength in the economy meant there could be further tightening.

Federal Reserve Chairman Jerome Powell is scheduled to speak later on Thursday, which could give markets more indications about the path of US monetary policy.

The dollar index, which measures the US currency against a basket of other major currencies, settled at 106.70 and is still hovering near the 106.84 level, which it reached overnight and was the highest since November 30.

The yen retreated from its new 11-month low, which it reached on Wednesday at 149.71, but remained very close to the threshold of 150 per dollar. In the latest trading, it fell 0.2 percent to 149.38 yen per dollar.

The markets view the exchange rate of 150 as a dividing line beyond which the Japanese authorities may intervene, as happened last year.

As for the euro, it remained largely stable, but remained above its lowest level in eight months, which it recorded yesterday, Wednesday, at $1.04880, while investors await key inflation data scheduled to be issued tomorrow, Friday, from the European Union.

The British pound recorded 1.2137 per dollar, which is close to its lowest level since March 17.

As for the Australian dollar, which touched its lowest level in ten months on Thursday night, and the New Zealand dollar, each rose by about 0.3 percent against the dollar.