Forex Today: US Dollar eases ahead of Bank of Japan decision

Agustin Wazne FXStreet

Here is what you need to know for Friday, September 18:

The US Dollar (USD) is ending Thursday softer. The US Dollar Index (DXY) hovers just above the 100.00 mark after climbing to a seven-week high earlier in the week. The sideways action follows Wednesday's decision by the Federal Reserve (Fed) to raise interest rates for the first time since 2023. The hike briefly lifted the Dollar, but the move faded as energy prices came off their highs and President Donald Trump renewed his demand for sharply lower rates.

The Fed's message was clearly hawkish with Chair Kevin Warsh flagging that another hike could still come this year, which should keep a floor under the Greenback. A sharp rally in Gold and a steadier tone in equities point to firmer risk appetite as traders turn to a busy Friday dominated by the Bank of Japan (BoJ).

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the British Pound.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.10%	0.19%	-0.17%	0.03%	-0.32%	-0.33%	-0.17%
EUR	0.10%		0.30%	-0.07%	0.14%	-0.24%	-0.19%	-0.05%
GBP	-0.19%	-0.30%		-0.35%	-0.16%	-0.53%	-0.49%	-0.33%
JPY	0.17%	0.07%	0.35%		0.15%	-0.15%	-0.17%	-0.02%
CAD	-0.03%	-0.14%	0.16%	-0.15%		-0.34%	-0.33%	-0.16%
AUD	0.32%	0.24%	0.53%	0.15%	0.34%		0.03%	0.15%
NZD	0.33%	0.19%	0.49%	0.17%	0.33%	-0.03%		0.18%
CHF	0.17%	0.05%	0.33%	0.02%	0.16%	-0.15%	-0.18%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

EUR/USD clings to modest gains in the high-1.1400s, holding firm as the softer Dollar lends support.

GBP/USD stays on the back foot in the mid-1.3300s, unable to recover after the Bank of England's cautious hold.

USD/JPY drifts lower toward the 156.00 region as traders brace for a widely expected BoJ rate hike.

AUD/USD has extended its rebound into the low-0.7100s, the day's strongest major as risk appetite improves.

Gold has surged, pushing above $4,350 per troy ounce and building on a powerful run.

West Texas Intermediate (WTI) Oil holds above the $100.00 mark, steadying after its recent pullback.

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

AUD/USD reclaims 0.7100 and above

AUD/USD regains the smile, reversing three consecutive daily pullbacks and returning to the area beyond 0.7100 the figure following the Wall St close on Thursday. That said, the softer tone in the US Dollar lends support to the pair’s recovery at the time when market participants continue to digest Wednesday’s hawkish message by the Fed.

USD/JPY looks slightly offered near 156.00 ahead of BoJ

USD/JPY trades with decent losses in the 156.00 region ahead of the opening bell in Asia. Indeed, the pair has faded part of the recent three-day positive streak, faltering just ahead of the 156.50 level. Meanwhile, all the attention is expected to be on the BoJ early on Friday, with investors largely anticipating a 25-bps rate hike.

Gold: Upside appears capped by $4,400

Gold climbs sharply and clinches fresh weekly peaks on Thursday, although the bull run seems to have met some initial hurdle around the $4,400 zone per troy ounce. The yellow metal’s rebound reverses three daily declines in a row and follows the modest retracement in the US Dollar as well as another negative performance of crude oil prices.

Zcash Price Forecast: ZEC eyes $1,500 breakout as retail demand expands

Zcash (ZEC) rises sharply above $1,400 on Thursday as the privacy-focused token defies the broader cryptocurrency market's doldrums this week, driven primarily by macro uncertainty and regulatory headwinds. ZEC’s bullish outlook, though seemingly overextended, remains stable, supported by growing retail demand reflected in the derivatives market.

One hike down, more to come? The Fed’s new rate path says yes

The Federal Reserve (Fed) raised its Fed Fund Target Range (FFTR) range by 25 basis points to 3.75%-4.00% in a unanimous decision, saying the move would support a timelier return to its 2% inflation goal.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.