Kevin Buckland

TOKYO (Reuters – The safe-haven euro held at a near 14-month high against it on Thursday. A surge in energy prices raised concerns that inflation might impede economic growth. However, the Federal Reserve was urged to take action sooner and normalize policy.

Following strengthening to $1.1529 in Wednesday’s currency on Wednesday, the U.S. currency was unchanged at $1.1558 per Euro. This is its first increase since July 2013.

After a 0.5% increase over the previous two sessions, the, which compares the greenback to a basket made up of six competitors, was unchanged at 94.188 on Wednesday. This week’s index reached an all-time high of 94.504, a new one year high.

Another safe haven was the Japanese yen. It stood at 111.375 per dollar. This is close to the middle of its range over the last week and a quarter.

Overnight, the stock rose to seven-year highs before it took a rest from recent torrid gains. Meanwhile, Europe saw a record-breaking peak and global coal prices also reached all-time highs.

“All of the talk on (trading floors), on social media, and through large markets has been about Nat Gas and it was deafening,” Chris Weston from Pepperstone, the head of research in Melbourne wrote in a client notice titled “OMGas”.

“Traders worried about the looming stagflation and asked central banks how they would handle a shock supply to stagflation.

Investors were also on edge about U.S. Debt Ceiling negotiations. But, the top U.S. Senate Republican Mitch McConnell indicated that his party would approve an extension of federal debt ceiling through December. A move which would avoid a major economic default and save the country from a devastating financial crisis.

The Federal Reserve has stated that it will begin to reduce its monthly bond purchases starting in November. After this, interest rate rises are expected.

Fed attention has been on the Fed’s main focus: employment. The Fed could use the non-farm payrolls report from Friday to get additional information about the Fed’s future moves.

According to a Reuters poll, economists anticipate continued improvements in the labor market. A consensus was reached that 473,000 new jobs would have been created in September.

The September ADP National Employment Report revealed that private U.S. payrolls rose more than anticipated. It was due to COVID-19-related infections subsiding. Americans can now travel and frequent restaurants as well as reengage with other high-contact activities.

Bitcoin, by far the most valuable cryptocurrency, reached a five-month high at $55,800 on Wednesday. It was last traded around $54,881.

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Prices for currency bids at 0114 GMT

Description: RIC U.S. Last Close Pct. Change YTD High Bid Low

Previous change

Session

Euro/Dollar

$1.1554 $1.1557-0.02%-5.43%+1.1561+1.1551

Dollar/Yen

11.1.4250 111.3800 +0.01% +7.82% 111.4400 +111.3650

Euro/Yen

128.72 128.75 128.75 128.75 128.7600 128.6500

Dollar/Swiss

0.9283 0.9273 +0.08%+4.89% +0.9283 +0.9275

Sterling/Dollar

1.3587 1.3580 +0.06%.-0.54%. +1.3596. +1.3587

Dollar/Canadian

1.2583 1.2591 1.0.05% -1.17%+1.2593.2572

Aussie/Dollar

0.7282 0.7273 +0.12% +5.34% +0.7287 (+0.7269)

NZ

Dollar/Dollar 0.6914 0.6916 +0.00% -3.69% +0.6920 +0.6912

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