Dollar rises amid declining hopes for an early cut in interest rates

The US dollar stabilized against major currencies today, stable against other major currencies, stable after its recent decline to its lowest level in two weeks. Traders are awaiting the release of the March Nonfarm Payrolls report later today, which is expected to add 200,000 jobs. This data is considered crucial for predicting the Federal Reserve’s monetary policy directions during the upcoming meetings on April 30 – May 1 and June 11-12.

The Japanese yen, which had been trading near the 152 range, saw it rise to a two-week high against the dollar. This rise is attributed to safe-haven yen buying and recent comments from Japanese officials indicating a stance against rapid depreciation of the currency. The yen was also strengthened by geopolitical concerns, as tensions escalated in the Middle East, leading to increased demand for the currency as a safe haven.

The dollar index, a measure of the US currency against a basket of major currencies, showed little change, last recording 104.18. This comes after a volatile week for the dollar, which saw it fall from a five-month high to a two-week low, weighed down by an unexpected slowdown in US services growth and subsequent speculation about possible interest rate easing.

Comments from Minneapolis Fed President Neel Kashkari indicated that interest rate cuts may not be necessary this year if inflation continues to decline, which helped the dollar recover from its previous losses. However, Federal Reserve Chairman Jerome Powell and other officials stressed the need for more discussions and data before any decision on adjusting interest rates is made.

The yen’s appreciation was also supported by statements from Japanese Finance Minister Shunichi Suzuki, who reaffirmed the government’s readiness to act against sharp declines in the yen’s value. In addition, Bank of Japan Governor Kazuo Ueda indicated that the central bank may intervene in monetary policy if a weak yen significantly affects inflation and wages.

In currency trading, the yen rose 0.29% against the dollar, reaching a two-week high of 150.92. Meanwhile, the euro remained unchanged at $1.0835, and the pound sterling was traded at $1.26405.

In the field of digital currencies, Bitcoin witnessed a slight increase by 0.56%, reaching $68,332.52.

Reuters contributed to this article.