The U.S. dollar has surged to its highest level since November, driven by safe-haven demand as geopolitical tensions escalate in the Middle East. The dollar index is on course to register its largest weekly gain since September 2022, standing at 106.02 with a 0.7% increase. The looming threat of an attack by Iran or its
Forex
The Japanese yen has reached three-decade lows, causing concern for officials and economists alike. Despite Japan’s recent interest rate hike and positive economic outlook, the yen continues to weaken. This has implications for Japanese exporters, tourists, and households alike. In this article, we will delve into the reasons behind the yen’s decline and the potential
On Wednesday, most Asian currencies showed little movement, while the dollar stabilized as traders awaited the release of crucial U.S. inflation data. This data is expected to play a significant role in shaping the outlook for interest rates, thereby influencing market behavior. As anticipation built up, traders refrained from making large bets, opting for a
As the market eagerly awaited U.S. consumer price inflation data for March, traders were on high alert for any signals regarding the Federal Reserve’s policy outlook. Following a strong jobs report that exceeded expectations, there were growing questions about the timing and magnitude of potential rate cuts by the Fed. U.S. interest rate futures indicated
In a recent statement, Bank of Japan Governor Kazuo Ueda made it clear that the central bank would not directly respond to currency moves when setting monetary policy. This stance comes in the midst of market speculation that the sharp falls in the yen could potentially prompt the BOJ to raise interest rates. Despite the
The currency markets in Asia saw little movement on Tuesday as traders awaited key U.S. inflation data later in the week. Despite repeated warnings of government intervention, the Japanese yen continued to weaken, moving back towards 34-year lows. This lack of significant movement was attributed to caution among traders who were waiting for more cues
The recent surge in Treasury yields has bolstered the US dollar, and this trend is likely to continue as Federal Reserve speakers emphasize caution in cutting rates prematurely. Macquarie suggests that Fed speakers scheduled for the upcoming week will adopt a hawkish stance, distancing themselves from Chairman Jay Powell’s dovish tone. This divergence in views
As investors brace themselves for the upcoming U.S. inflation data, the dollar has hit a pause. The recent fluctuation in the market can be attributed to a mixed bag of economic data in the United States. Last week saw a slowdown in services growth followed by unexpectedly strong hiring numbers, causing traders to rethink their
Throughout Asia, currency markets have experienced minimal movement as traders react to the latest nonfarm payrolls report. The report, which revealed a strong U.S. labor market, has led to a shift in expectations regarding the Federal Reserve’s stance on interest rates. As a result, the dollar has seen a slight increase in value, with traders
In the recent market scenario, most Asian currencies remained stagnant, particularly the Japanese yen which stabilized near two-week highs. The dollar, on the other hand, experienced a rise due to the anticipation of key nonfarm payrolls data and hawkish comments from Federal Reserve officials. The remarks made by Minneapolis Fed President Neel Kashkari regarding sticky