<p>The dollar rose to a nine-month high versus the euro and Australian and New Zealand currencies on Thursday, with Federal Reserve policy makers mostly in agreement that a stimulus taper would start this year.</p>.<p>The euro fell to $1.1684, and the kiwi slid to $0.6848. The Australian dollar fell to $0.72125 but pared most of those losses to trade 0.07 per cent lower at $0.72265 after Australia reported a stronger jobs market than economists expected.</p>.<p>The dollar index, which measures the currency against the euro, yen and four other rivals, climbed to 93.347, its highest since April 1.</p>.<p><strong><a href="https://www.deccanherald.com/business/business-news/oil-extends-losses-on-pandemic-fears-and-rise-in-us-gasoline-stockpiles-1021243.html" target="_blank">Read | Oil extends losses on pandemic fears and rise in US gasoline stockpiles</a></strong></p>.<p>The greenback added 0.2 per cent to as high as 110.04 yen. In minutes of their July 27-28 meeting released overnight, Fed officials saw the potential to ease bond-buying stimulus this year if the economy continues to improve as expected, although the condition of "substantial further progress" toward maximum employment had not yet been met.</p>.<p>A reduction in debt purchases is typically positive for the dollar as it means the Fed will not be flooding the financial system with cash.</p>.<p>The focus for Fed watchers now is the annual Jackson Hole, Wyoming symposium, which runs Aug. 26-28. "Our read is that Fed officials will continue to signal ongoing steps toward normalising policy, providing the USD with crucial ongoing underlying support," Westpac strategists wrote in a client note.</p>.<p>"The AUD remains in a powerful four-month downtrend," and looks set to drop below $0.72, while the New Zealand dollar eyes a drop to $0.68, although it should rise later in the year, they wrote.</p>.<p>The kiwi lost support on Wednesday after the Reserve Bank of New Zealand delayed becoming the first G10 central bank to raise interest rates during the pandemic, after a new outbreak thrust the nation into lockdown just a day earlier.</p>.<p>On Thursday, RBNZ Governor Adrian Orr told parliament he still sees the official cash rate gradually increasing towards a more neutral level over the next 18 months.</p>.<p>New Zealand reported 11 new Covid-19 cases on Thursday, with the health chief saying he expects the number to grow. Australia's New South Wales state, home to Sydney, reported record infections for a second day on Thursday, despite a strict lockdown.</p>.<p>However, the Aussie bounced after data showed the country's unemployment rate fell to 4.6 per cent in July, compared with a 5.0 per cent rate consensus estimate from economists, although the Australian Bureau of Statistics said the decline shouldn't necessarily be viewed as a sign of strengthening in the labour market.</p>
<p>The dollar rose to a nine-month high versus the euro and Australian and New Zealand currencies on Thursday, with Federal Reserve policy makers mostly in agreement that a stimulus taper would start this year.</p>.<p>The euro fell to $1.1684, and the kiwi slid to $0.6848. The Australian dollar fell to $0.72125 but pared most of those losses to trade 0.07 per cent lower at $0.72265 after Australia reported a stronger jobs market than economists expected.</p>.<p>The dollar index, which measures the currency against the euro, yen and four other rivals, climbed to 93.347, its highest since April 1.</p>.<p><strong><a href="https://www.deccanherald.com/business/business-news/oil-extends-losses-on-pandemic-fears-and-rise-in-us-gasoline-stockpiles-1021243.html" target="_blank">Read | Oil extends losses on pandemic fears and rise in US gasoline stockpiles</a></strong></p>.<p>The greenback added 0.2 per cent to as high as 110.04 yen. In minutes of their July 27-28 meeting released overnight, Fed officials saw the potential to ease bond-buying stimulus this year if the economy continues to improve as expected, although the condition of "substantial further progress" toward maximum employment had not yet been met.</p>.<p>A reduction in debt purchases is typically positive for the dollar as it means the Fed will not be flooding the financial system with cash.</p>.<p>The focus for Fed watchers now is the annual Jackson Hole, Wyoming symposium, which runs Aug. 26-28. "Our read is that Fed officials will continue to signal ongoing steps toward normalising policy, providing the USD with crucial ongoing underlying support," Westpac strategists wrote in a client note.</p>.<p>"The AUD remains in a powerful four-month downtrend," and looks set to drop below $0.72, while the New Zealand dollar eyes a drop to $0.68, although it should rise later in the year, they wrote.</p>.<p>The kiwi lost support on Wednesday after the Reserve Bank of New Zealand delayed becoming the first G10 central bank to raise interest rates during the pandemic, after a new outbreak thrust the nation into lockdown just a day earlier.</p>.<p>On Thursday, RBNZ Governor Adrian Orr told parliament he still sees the official cash rate gradually increasing towards a more neutral level over the next 18 months.</p>.<p>New Zealand reported 11 new Covid-19 cases on Thursday, with the health chief saying he expects the number to grow. Australia's New South Wales state, home to Sydney, reported record infections for a second day on Thursday, despite a strict lockdown.</p>.<p>However, the Aussie bounced after data showed the country's unemployment rate fell to 4.6 per cent in July, compared with a 5.0 per cent rate consensus estimate from economists, although the Australian Bureau of Statistics said the decline shouldn't necessarily be viewed as a sign of strengthening in the labour market.</p>