The dollar remained strong on Wednesday, hovering near the 160 yen mark as investors waited for U.S. price data to be released later in the week. The euro stayed steady at $1.0708, while the yen’s level of 159.71 per dollar had markets on alert. A surprise increase in Canadian inflation caused some volatility in the foreign exchange market, briefly pushing the Canadian dollar to a three-week high. Analysts believe that monetary policy normalization may take some time, leading to a return to a neutral policy. Market expectations are that Friday’s U.S. data will show a slowdown in annual growth in the Federal Reserve’s preferred core personal consumption expenditure index, potentially paving the way for rate cuts. Policymakers continue to monitor the situation closely, with some indicating that decisions will be data-dependent. The Australian and New Zealand dollars dipped slightly, reflecting thin trading conditions. Interbank FX volumes were reported to be lower than usual. Sterling held steady at $1.268, while bitcoin recovered from a recent dip. China’s yuan, like the yen, is feeling pressure from the dollar’s strength. The yuan has been kept at the lower end of its trading range for months. If the USD/JPY exchange rate surpasses 160, it could pose challenges for preventing further yuan depreciation.
Subscribe
Login
0 Comments