The dollar rose against most major peers as investors speculate whether the Federal Reserve is moving closer to raising interest rates with the U.S. economy strengthening while inflation persists below the central bank’s target.
The Aussie fell against 15 of its 16 major counterparts after the Reserve Bank of Australia predicted spare capacity in labor markets will endure and iron ore, the nation’s biggest export earner, dropped below $100 a ton.
U.S. stocks fell, erasing earlier gains, as Secretary of State John Kerry said the president will hold Syria’s government accountable for using chemical weapons. Treasuries held onto earlier gains triggered by a drop in durable goods orders.
The euro’s rally to a six-month high after the trading bloc emerged from its longest-ever recession is set to reverse, trading patterns show, as the impact of the stronger economy is overwhelmed by the U.S. paring stimulus.
The yen fell to the lowest level in almost three weeks against the dollar on speculation Bank of Japan Governor Haruhiko Kuroda will reiterate the case for monetary easing at an annual Federal Reserve’s conference.