The US dollar showed weakness against the New Zealand dollar and Swiss franc on Wednesday, influenced by dovish comments from New York Federal Reserve President John Williams and ahead of the September US Consumer Price Index (CPI) release. The NZD/USD pair bounced back from a 17-month low to near 0.5625 during early European trading hours, while USD/CHF extended its losses for a second day, trading around 0.8320 during Asian hours, according to FX Street.
Danske Bank strategists highlighted the importance of the upcoming September CPI report, noting that headline and core inflation are expected to rise year-on-year despite some easing in monthly readings. The market is closely watching these figures ahead of the October FOMC meeting, as they could influence the Federal Reserve’s policy direction.
For Japanese investors, these developments underscore the ongoing volatility in FX markets amid shifting US monetary policy signals, which can impact carry trades and risk sentiment in the region.