The dollar regains strength against the yen due to expectations of rates in Japan and the US

On the other hand, the greenback rises slightly ahead of the release of key data on US inflation, which will provide more clues about how quickly the Federal Reserve (FED) could begin its rate easing cycle.

In that context, the yen falls 0.25% to 147.26 per dollarits biggest daily drop since March 4.

Bank of Japan Governor Kazuo Ueda offered a slightly bleaker assessment of the country’s economy than in January, while Finance Minister Shunichi Suzuki said that Japan is not in a phase where it can declare deflation defeated. His remarks come ahead of next week’s Bank of Japan monetary policy meeting.

Volatility of the dollar/yen pair

So, one-week implied volatility in the dollar/yen pairwhich measures expectations of price swings in the currency pair, jumped to 12.115% on Tuesday, its highest level since December, and was last at 11.992%.

He dollar index rises 0.1%, to 102.9, after hitting a nearly two-month low of 102.33 last week.

The market expects consumer prices to rise 0.3% monthly in February, but investors will be closely watching for any upside surprises, which could derail the pace of rate cuts planned by the Federal Reserve.

Other currencies and crypto against the dollar

In the general market, the euro It was trading stable at $1.0928, after reaching a high of almost two months last week.

The pound sterling falls 0.2%, to $1.2785, after the weak reaction of British wage data, which rose somewhat less than expected.

As for the cryptocurrencieshe Bitcoin drops 0.34% to $71,898, one breath away from the record reached in the previous session. Ether hit a high of $4,093.70, its highest level since 2021, although it later trimmed some of those gains to settle at $3,999.30.