Yen Slides to Ten-Week Low as Dollar Strengthens

The yen stumbled to its lowest point in ten weeks on Friday, while the dollar continued its upward trajectory for the fourth consecutive week. This shift comes as traders recalibrate their expectations regarding interest rate movements by central banks.

Yen’s Decline and Dollar’s Advance

• The yen exhibited limited movement, hovering around 149.395 against the dollar. This marked its weakest position since November 27, having dipped to 149.495 earlier in the trading session. It registered a 0.76 percent decline in the previous session and is poised for a weekly slide of 0.68 percent.
• Meanwhile, the dollar index, a measure of the greenback’s performance against a basket of major currencies, edged slightly higher to 104.19. This uptick follows a 0.1 percent rise on Thursday, fueled by encouraging data reflecting the resilience of the US labor market. For the week, the dollar index witnessed a 0.2 percent increase.

Stability in Other Currencies

• The euro saw minimal movement, holding steady at $1.07715.
• Pound sterling settled at $1.26135.
• The New Zealand dollar experienced a 0.39 percent uptick, reaching 0.61205 US dollars. This was supported by market speculation surrounding the Reserve Bank of New Zealand’s stance on interest rates, buoyed by robust job market data released earlier in the week.
• The Australian dollar remained relatively stable at $0.6491.

Bitcoin’s Rally

• Bitcoin displayed resilience, climbing by 1.5 percent to approximately $46,000. The cryptocurrency is poised for an eight percent weekly gain, marking its strongest performance in two months.

As traders navigate shifting monetary policy expectations and economic data releases, market dynamics continue to evolve, shaping the trajectory of major currencies and assets.