Colin Asher, senior economist at brokerage Mizuho, said the yen’s moves seemed mainly driven by currency inflows earlier in the week: “The dollar broke above the old high of 135.60 yen and caused gains that led it to pierce the threshold of 136.0 yen and continue to rise”.
He added: “The reason is the same as last week and the week before and the week before: the BoJ will be the last of the central banks of the top 10 economies to exit loose monetary policy, the Fed picks up the pace of adjustments and debt yield spreads widen.
Tuesday afternoon, The yen traded at 136.20 yen per dollar, just below a 24-year low. The yen also fell 1.3% to 143.78 per euro, its lowest level since June 9.
In other currencies, the dollar index traded little changed at 104.41 unitsbroadly supported by expectations of sharp rate hikes at upcoming Fed meetings.
Richmond Fed President Thomas Barkin joined the chorus of calls for more aggressive central bank policy, saying Tuesday that guidance provided by Federal Reserve Chairman Jerome Powell of a rate hike of 50 or 75 basis points in July, he thought it was “pretty reasonable.”
Earlier, The dollar fell after data showed US existing home sales fell to a two-year low in May.when prices rose to a record high and mortgage rates rose even higher, driving initial buyers out of the market.
The euro, on the other hand, traded slightly higher at $1.0529, up 0.2%.
The community currency advanced after European Central Bank chief economist Philip Lane said the ECB would raise rates by 25 basis points at its July meeting but had not yet decided on the extent of the September hike. which suggests that the organism could opt for an increase of 50 basis points.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
