The dollar was on the front foot, extending its gains from last week after a still-hawkish Federal Reserve surprised markets by signalling US rates would need to stay higher for longer than initially expected.

The yen fell to a more than 10-month low of 148.49 per dollar and remained within striking distance of 150, a level which some market watchers saw as a line in the sand that would spur forex intervention from Japanese authorities similar to that of last year’s. It last traded at 148.35 per dollar.

Elsewhere, the euro gained 0.05% to $1.0649, after having fallen to a six-month low of $1.0615 on Friday against a stronger dollar.

Sterling slipped 0.04% to $1.2240, after sliding more than 1% last week on the back of the Bank of England’s pause on its rate-hike cycle, a decision which came a day after data showed Britain’s high inflation rate unexpectedly slowed.

The pound was headed for a more than 3% fall in September, its worst monthly performance in a year.

The dollar index, which on Friday touche
d an over six-month high, firmed at 105.58.

The Aussie fell 0.19% to $0.6429 while the New Zealand dollar was down 0.18% at $0.5950, after touching a roughly three-week high of $0.6001 earlier in the session.

Source: Qatar News Agency