The Japanese yen hit an 8-week high against the US dollar. This surge followed a Bank of Japan (BOJ) member’s support for further interest rate hikes. Investors reacted quickly, leading to increased demand for the yen.
While the yen strengthened, the British pound dropped significantly. The Bank of England (BoE) reduced interest rates, aligning with expectations. However, concerns about inflation and slow economic growth pushed the pound lower. The currency fell 0.8% to $1.24065, a sharp contrast to its one-month high of $1.2437 seen earlier.
Money markets now expect further easing by the BoE. Experts believe the UK's economy may help limit the pound’s losses. However, uncertainties in global markets continue to pressure major currencies.
Meanwhile, the US dollar index stayed near recent lows, reflecting market concerns. The index had previously dropped 2% from its peak of 110.17 in January. Recent trade policy shifts by the US government have influenced the dollar’s movement.
Investors are now focusing on upcoming US payroll data. The report will provide further insights into the Federal Reserve’s policy direction. A rate cut by the Fed is fully expected by July, with additional reductions possible by December.
In Japan, the yen touched 151.81 per dollar, marking its strongest level since December 12. It later settled at 151.85 per dollar. BOJ board member Naoki Tamura's hawkish stance drove this movement. The market now prices in a quarter-point BOJ rate hike by September.
Other global currencies also showed mixed trends. The offshore yuan weakened slightly, while the Canadian dollar hit its highest level since December 17. The euro declined 0.36% to $1.0363, reflecting ongoing economic uncertainty.
With central banks making key policy moves, forex traders must stay informed. Stay ahead of the latest market trends about Yen 8-week high by visiting our website: FIXIO Markets.
The yen hit an 8-week high after a BOJ member supported rate hikes. Stay updated on forex market trends and key policy changes.
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