The dollar rose as much as 0.7% to 134.40 yen in Asian trade, the biggest gain since December 20. when the Bank of Japan relaxed the 10-year Japanese government bond rate band.
On that day, the yen staged its biggest one-day rally against the dollar in 24 years, closing up 3.8% as traders speculated a possible withdrawal of stimulus.
But a summary of views from that meeting, published on Wednesday, showed policymakers continued to support the ultra-dvish bias, despite discussing prospects for higher wage growth and sustained inflation next year.
In Wednesday’s session, the dollar was up 0.55% against the Japanese currency at 134,240 yen.
China’s swift rollback of strict zero-COVID policies, which have severely hampered its economy for nearly three years, has been a shock to markets in the last week of the year.
Investors have to reconcile the pick-up in economic activity as Chinese consumers and businesses return to some sort of normalcy while also dealing with the impact of rising infections.
For his part, The pound rose as much as 0.6% on Wednesday against the US currency to $1,211, after UK markets reopened from a long weekend, before stabilizing. The pound finally lost a minimum 0.02% against the dollar to u$s1,203.
The euro fell 0.18% to u$s1.06225having traded steadily around six-month highs in the couple of weeks since European Central Bank President Christine Lagarde said rate hikes would have to continue.
Source: Ambito
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