The dollar clung to modest gains early on Wednesday, having made an about-turn overnight in a tentative sign that the recent sell-off may have run its course for now. The greenback bounced to 119.73 yen from a near one-month trough of 119.22 plumbed overnight, but is expected to stall ahead of 120.00. The euro stood at $1.0915 after turning around from a high of $1.10295. Traders said a failure to break above the post-Fed meeting high of $1.10625 had triggered the reversal. The dollar also regained some ground against commodity currencies such as the Australian dollar, which slid back below 79 U.S. cents from a two-month peak of $0.7939. Investors had rushed to cut long dollar positions after the Federal Reserve gave a dovish steer on interest rates last week, sending the greenback crashing back from multiyear highs.
The Russian ruble rose strongly on Tuesday ahead of monthly tax payments, continuing a rally since February that has taken it to its highest levels against the dollar and euro since the end of last year. The Russian currency has now gained 7% against the dollar over the last week, reflecting a weaker dollar globally as well as Russian tax payments, although it is still down almost 40% since the middle of last year. By 1615 GMT it had gained 1.3% against the dollar, to 57.98, and was 1.4% stronger, at 63.38, against the euro.
The forint jumped to 14-month highs against the euro on Tuesday as Hungary's central bank launched a monetary easing cycle, though further rate cuts may not be as big as previously expected. The forint firmed a quarter of a percent after the bank cut its base rate by 15 basis points to, 1.95%, its first reduction since last July.