The yen quote against the main currencies, it continues to weaken particularly against the euro, whose crossing marks its lowest levels since 2008, despite the fact that the Bank of Japan announced yesterday the first increase in interest rates in 17 years, given the market’s expectation that this decision will not, for the moment, mark the beginning of a cycle of tightening of the country’s monetary policy.
In the foreign exchange market, the yen exchange rate remained stablerelatively stable against the dollarwhich was exchanged this Wednesday for just over 151 yen, in line with the levels maintained since last November.
However, the euro appreciated substantially against the Japanese currency and was exchanged for up to 164.75 yen, its best exchange rate since August 2008.
In so far this year, The euro has appreciated around 6% against the yen and 18% in the last twelve months, while the dollar exchange rate has risen almost 8% since the end of last year and around 16% in twelve months.
Dollar waiting for the Fed
He dollar American gains positions at the beginning of the negotiation day this Wednesday in Europe awaiting the latest decision of monetary policy of the Federal Reserve, while sterling falls after signs of cooling in UK inflation; The Japanese yen continues to decline.
He dollar index, which tracks the evolution of this currency against a basket of six other major currencies, rose 0.3% to 103,800, placing near two-week highs.
Federal Reserve officials conclude their monetary policy meeting this Wednesday, and everything indicates that will keep interest rates at high levels while they continue to fight inflation.
However, traders will carefully study the statements by President Jerome Powell at the subsequent press conference, as well as the central bank’s new economic projections for clues as to when committee members believe it would be possible to start cutting interest rates.
The pound weakens after the publication of inflation data
The GBP/USD pair fell 0.2% to 1.2696 after the uk inflation prices fell more than expected in Februarya day before the Bank of England announced its latest monetary policy decision.
Consumer prices rose 3.4% in annual terms in February, slowing after the 4.0% increase in January, and below the 3.5% expected.
This supposes the lowest inflation rate since September 2021and offers hope that inflation, which has been persistent for some timeeventually pull back to the central bank’s 2% target in the coming months.
It is expected that the Bank of England leaves interest rates unchanged on Thursday, But signs of cooling inflation could give room for central bankers to offer more pessimistic forward guidance.
Source: Ambito
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