New Zealand Dollar Plummets, U.S. Dollar Remains Firm: Will Monetary Policy Shift the Balance?
28.10.2026
- Bank of Canada Policy Rate Announcement
- U.S. FOMC Policy Rate Announcement
In the U.S. currency market the previous day, the U.S. dollar was bought against major currencies ahead of the Federal Reserve’s monetary policy decision. The Dollar Index rose 0.3% to 102.40, while the yield on the 10-year U.S. Treasury note hovered around 5%.On the 27th, the USD/JPY pair traded within a range of 157.42 to 157.99 yen—a spread of about 57 sen—and closed in the upper 157-yen range. Dollar buying also prevailed against the Canadian dollar, with the USD/CAD pair rising within a range of 1.4009 to 1.4055.Ahead of the Bank of Canada’s interest rate decision on the evening of the 28th, the focus will be on the divergence in policy outlooks between the U.S. and Canada.
European currencies were weighed down by a strong U.S. dollar as well as economic and fiscal concerns in France, causing the euro to trade lower. France’s October consumer confidence index came in at 80, below the forecast of 85, marking its lowest level since 2013.The euro-dollar exchange rate fell from the upper 1.11 range to the 1.112 range on the 27th and remained around 1.113 on the morning of the 28th.In the UK, ahead of the government’s budget announcement, the GBP/USD pair faced resistance near 1.33, while the USD/CHF pair rose to around 0.829 francs. We should carefully assess any potential rebound in European currencies.
In today’s economic data, Australia’s September CPI was released at 9:30 a.m., showing a year-over-year increase of 4.3%, and at 10:00 a.m., the Reserve Bank of New Zealand unexpectedly kept its policy rate unchanged at 2.75%.The New Zealand dollar briefly fell to $0.5585 against the U.S. dollar, and reactions among Oceania currencies were mixed. Tonight at 22:45, the Bank of Canada will announce its policy rate decision, and the prevailing view is that it will raise rates from the current 2.25% to 2.50%.The FOMC statement is scheduled for 27:00, followed by a press conference with Fed Chair Warsh at 27:30; investors should keep a close eye on fluctuations in the Canadian and U.S. dollars.
Author: Keisuke Sakurai
