Sat, January 28, 2023

The Dollar Remains Powerful Despite Fragile Fluctuating Yen

Dollar, Euro

The dollar rose on Monday despite another intervention in the Japanese currency market. Sterling has been unsettled for the last seven weeks as Rishi Sunak was elected Britain’s third Prime Minister. Meanwhile, the Chinese yuan also hit fresh lows offshore.

The yen fell to 149.70 against the dollar overnight before rising to a high of 145.28, signaling another intervention by the Bank of Japan (BOJ), which represents Japan’s finance ministry. The day before, the BOJ intervened to support the currency for the first time since 1998. Yen overnight volatility spiked to its highest level since September 21. According to a Tokyo financial market broker, Japan may have spent 5.4T to 5.5T yen ($36.16B to $36.83B) on currency-buying interventions last Friday.

Should We Expect a Hawkish Change in Rates?

The U.S. economy has been progressively displaying tremendous resilience, but it now appears that this is changing. The Fed raised interest rates by 75 basis points for the third time in September. Fed should do a fourth rate increase of similar magnitude at the policy-setting meeting next week. Though it is unclear how aggressive policymakers will be going forward. Markets are now waiting to see how far the economy has deteriorated and whether the Fed will hold off on raising interest rates after raising rates in December and February. At 3:30 p.m., the greenback was up 0.089 percent at 111.93 against a basket of six. EDT (1930 GMT).

After Sunak, the nation’s former chancellor, was named head of the British Conservative Party, paving the way for him to become the country’s next prime minister, the pound’s value fluctuated. Regardless of how Sunak’s leadership plays out, the U.K. economy will certainly face more challenging times as it struggles to recover from a deepening downturn and perhaps the possibility of a general election, according to Giles Coghlan, the chief market analyst at HYCM.

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Your email address will not be published.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