The dollar reaches its highest point in more than a year against the yen this Monday, November 13, supported by the decline in expectations of cuts in the interest rates by the US Federal Reserve for next year.
Japanese Finance Minister Shunichi Suzuki says the government continues to closely monitor the foreign exchange market and will take appropriate action. However, his comments have limited immediate impact on the yen, which has seen a nearly 14% depreciation against the dollar over the year.
Simultaneously, Sterling sees slight rebound after reshuffle of key government jobs carried out by the British Prime Minister, Rishi Sunak.
Dollar vs. other currencies
The dollar climbs to 151.88 yen, marking its highest level since October 2022, and later registered an increase of 0.15%. Over the past week, it experienced an increase of approximately 1.4%representing its biggest weekly advance against the yen in three months.
Several Federal Reserve monetary authorities, including its president, Jerome Powell, hint this week that the fight against inflation may not be over, which causes a decrease in rate cut expectations in the market. This, in turn, raises short-term Treasury yields and supports the dollar.
The dollar index, which compares the US dollar with a basket of six prominent currencies, shows a slight increase, standing at 150.80 units.
Regarding other currencies, the euro experiences a slight increase to 1.0684 dollars, while the pound sterling advances 0.2% to $1.2254.
The British currency also gained 0.2% against the euro, reaching around 87.24 pence, after changes to the make-up of the UK government were announced.
Source: Ambito
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