The US dollar ended the week firm, rising against most of its major peers. What is more, September was a good month for the greenback overall as it gained against most of its major peers.
The major contributors to the dollar’s strength were hopes for a tax reform from US President Donald Trump and an interest rate hike from the Federal Reserve. Other safe currencies, namely the Japanese yen and the Swiss franc, were also strong. The yen retained gains even as Prime Minister Shinzo Abe announced a snap election.
The euro was hurt by an inconclusive outcome of the German election. The New Zealand dollar was hurt by the same problem after the New Zealand election, but also by the signs that the Reserve Bank of New Zealand is not going to tighten its monetary policy in the foreseeable future. Other commodity currencies, the Canadian and the Australian dollars, experienced the same problem with their central banks.
EUR/USD dropped from 1.1897 to 1.1814, touching the low of 1.1718 during the week. USD/JPY ticked up from 112.15 to 112.47. USD/CAD rallied from 1.2334 to 1.2468.
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