Sat, January 28, 2023

Dollar beats five-year high versus the yen

Us,Dollar,And,Japanese,Yen,Symbols,Over,Black,Background,With

The U.S. dollar increased against the Japanese yen on Tuesday, beating a five-year high. It resulted from investors considering Omicron to be less harmful.

Investors believe that the new strain will not likely affect the global economy negatively. They also think it won’t delay the Fed’s expected rate hikes.

This year, an advancement in U.S. Treasury yields on anticipations for a Fed rate hike backed the greenback. Those expecting at least a 25-basis-point hike at the central bank’s policy-setting committee meeting ended 60%. Yields on U.S. 5-year notes, sensitive to rate hike expectations, gained the highest level after 2020.

Yields on U.S. 2-year notes edged lower after reaching a 23-month high on Monday.

The dollar index increased 0.07%, with the euro down 0.06% to $1.1289.

The Japanese yen weakened 0.66% versus the greenback at 116.09 per dollar. It happened after the dollar reached a high of 116.35 against the yen. It ranked at its highest level since the beginning of January 2017.

Overview of the current changes

Senior market analyst at Western Union Business Solutions, Joe Manimbo, said that the market is just waiting for higher rates from the Fed. He explained that the critical catalyst pushed the dollar/yen pair higher.

He said that the main challenge here is Omicron which looks pretty unpredictable. Still, the market’s take so far is that it doesn’t look like it will deal an effective blow to the recovery. He assumed that it just raises the spotlight on central banks and how they push interest rates higher.

Neel Kashkari, Minneapolis Federal Reserve Bank President, said he expects the U.S. central bank to raise interest rates two times in 2022. He added that it would address persistently high inflation, switching his view that rates will have to stay at zero until 2024.

Interested in Forex Trading? Read WiBestBroker’s comprehensive Gtradex Review.

YOU MAY ALSO LIKE

Oil might reach $150 per barrel as OPEC+ will control supply

The biggest oil and gas companies are prepared to report annual profits,

Sterling declined on Thursday. What about Euro and Dollar?

Sterling fell slightly on Friday but was still close to its highest

Nokia Beats Exceeds Earnings Predictions

Nokia Oyj’s earnings topped expectations. Even amid a worse macroeconomic backdrop, as

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

OANDA Japan: No More fxTrade, USD/JPY Margin Shift

On Friday, one of Japan’s longest-standing online forex and CFD brokerages, OANDA Corporation, announced major changes to their service.  Specifically, the Japanese subsidiary of the brokerage will no longer allow new downloads of

BROKER NEWS

Broker News

OANDA Japan: No More fxTrade, USD/JPY Margin Shift

On Friday, one of Japan’s longest-standing online forex and CFD brokerages, OANDA Corporation, announced major changes to their service.  Specifically, the Japanese subsidiary of the brokerage will no longer allow new downloads of its