The dollar index, which tracks the United States unit against a basket of six rival currencies, was down about 0.2 per cent at 96.691.
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While the U.S. central bank earlier this year said it expected to hike rates before 2016, summer turmoil in global markets and a growth slowdown in China have led its policy board to reconsider and speculation if rife that it will hold off until possible March.
“Classic risk assets are all slightly softer but it’s not been an aggressive move”, he said.
Stocks in asia started the day with a rally but untill the close of the session the rally went out of steam, MSCI’s index of Asia-Pacific shares outside Japan rose 0.2% to hit its highest since August. 12, Honk Kong lost 0.5% Japan’s Nikkei rose 0.65% to a two-month high.
After a gain of more than 7 percent over the past four weeks, MSCI’s all-country world index.MIWD00000PUS of the equity performance of 46 countries shed 0.1 percent.
With the Japanese economy struggling to gain traction and inflation tepid, the BoJ is facing calls to ramp up its already vast bond-buying stimulus programme at the end of a two-day meeting Friday.
The U.S. Federal Reserve will release a policy statement on Wednesday, and the Bank of Japan’s statement is due Friday. The former two hit record highs, while Microsoft rose to a 15-year high. Mainland Chinese shares rose on Monday after China cut the benchmark one-year lending rate – for the sixth time in less than a year – by 25 basis points to 4.35%, and lowered big banks’ reserve requirement ratio late. “Mainland investors are cautious”.
Global stocks have enjoyed a healthy run-up this month – after suffering their worst quarter in four years during July-September – and analysts say further easing measures could spark a continued advance.
Ahead of the meeting, Premier Li Keqiang said that China has never stated the economy must grow seven percent this year, coinciding with remarks by a top central bank official on Saturday that China would be able to keep annual economic growth at around 6-7 percent over that period. Risk sentiment supported by Thursday’s message from European Central Bank President Mario Draghi that the bank stood ready to enhance quantitative easing.
Crude oil prices fell, as US crude settled down 1.4 percent to $43.98 and Brent settled 0.9 percent lower to $47.54 a barrel on worries that the oversupply in oil products would swell from unseasonably warm weather and the waning maintenance cycle for USA refineries.
In the afternoon the greenback bought 120.71 yen compared with 121.07 yen in New York, while the single currency was at $1.1070 against $1.1059 in USA trade. “Markets are now expecting easing from the BOJ”, said Takeru Ogihara, chief strategist at Mizuho Trust Bank.
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Iron ore futures in China and Singapore ticked lower amid pressure from a weak steel market, though copper prices edged higher.
