The dollar was broadly stable ahead of US inflation data later on Wednesday, although it rose against the yen as investors digested comments from the Bank of Japan Governor indicating a possible end to negative interest rate policy.<\/p>\n\n\n\n
The US currency rose about 0.2 percent to 147.39 against the yen.<\/p>\n\n\n\n
Alvin Tan, head of Asia FX strategy at RBC Capital Markets, said investors have more time to consider Bank of Japan Governor Kazuo Ueda’s comments more carefully.<\/p>\n\n\n\n
He added, “The statements we had in mind were completely conditional. Ueda did not promise anything.”<\/p>\n\n\n\n
Ruling party lawmaker Hiroshige Seko also signaled Tuesday his preference for ultra-loose monetary policy after Ueda’s comments sent the yen and bond yields higher.<\/p>\n\n\n\n
The yen was under great pressure against the dollar, as the Bank of Japan is still pursuing a policy that is contrary to the rest of the global central banks, especially since the Federal Reserve began its monetary tightening cycle in March 2022.<\/p>\n\n\n\n
More broadly, the dollar remained stable although moves were weak as traders awaited closely watched US inflation data due later on Wednesday.<\/p>\n\n\n\n
The British pound fell 0.05 percent to $1.2489, and the Australian dollar fell 0.03 percent to $0.6408.<\/p>\n\n\n\n
The dollar index, which measures the performance of the US currency against a basket of competing currencies, settled at 104.61 after falling to its lowest level in a week on Monday and recording its largest daily decline in two months.<\/p>\n\n\n\n
As for the euro, it saw little change, settling at $1.0753. The highest level in a week was recorded at $1.0777 in the last session, with rising expectations that the European Central Bank will continue to raise interest rates before announcing the monetary policy decision.<\/p>\n\n\n\n
A source told Reuters that the European Central Bank expects inflation in the 20-country euro zone to remain above three percent next year, strengthening expectations for a tenth consecutive increase in interest rates on Thursday.<\/p>\n","protected":false},"excerpt":{"rendered":"
The dollar was broadly stable ahead of US inflation data later on Wednesday, although it rose against the yen as investors digested comments from the Bank of Japan Governor indicating a possible end to negative interest rate policy. The US currency rose about 0.2 percent to 147.39 against the yen. Alvin Tan, head of Asia …<\/p>\n","protected":false},"author":9,"featured_media":88375,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[6837,6885,8501,8143],"class_list":["post-89364","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-eurozone","tag-fed","tag-feds-beige-book","tag-interest-rate-hikes"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/89364","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=89364"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/89364\/revisions"}],"predecessor-version":[{"id":89365,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/89364\/revisions\/89365"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/88375"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=89364"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=89364"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=89364"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}