New York, US (BBN) – The US dollar gained against the yen in Asia on Thursday as investors looked ahead to a key test of Republican control of Congress and the presidency with the fate of a healthcare bill due for a vote.
USD/JPY changed hands at 111.43, up 0.24 per cent, while AUD/USD traded at 0.7653, down 0.31 per cent, reports
Earlier, the Reserve Bank of New Zealand held rates steady as expected at a record low 1.75 per cent on Thursday, and said policy would retain an easing bias.
NZD/USD traded at 0.7035, down 0.11 per cent.
“Monetary policy will remain accommodative for a considerable period,” Reserve Bank Governor Graeme Wheeler said in a statement.
“Numerous uncertainties remain, particularly in respect of the international outlook, and policy may need to adjust accordingly.”
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, drose 0.13 per cent to 99.61.
Overnight, the dollar slumped against a basket of major currencies on Wednesday, as investors questioned the progress of Trump’s economic policies while weaker than expected existing home sales weighed on sentiment.
The dollar dived to session lows, as investors focused on the lack of progress concerning the Trump administration’s pro-growth policies ahead of a key House vote on Thursday while weaker than expected existing home sales added to downside momentum.
The National Association of Realtors said on Wednesday existing home sales declined 3.7 per cent to a seasonally adjusted annual rate of 5.48 million units last month.
Meanwhile, the pound dipped against the dollar on the back of a reported terror incident in the UK but later recovered. GBP/USD traded at 1.2482, down 0.02 per cent.