The dollar loses positions at the beginning of the trading day this Monday in Europe, although it continues to accumulate strong gains of more than 1% so far in April.
The US dollar loses positions this Monday before the last meeting of the Federal Reserve, while the yen soars on speculation that Japanese authorities have been intervening to try to stop its seemingly relentless decline.
The dollar index, which tracks the evolution of this currency against a basket of six other major currencies, down 0.2% to 105.630, after rising to 106.00 on Thursday.
The dollar loses positions at the beginning of the trading day this Monday in Europe, although it continues to accumulate strong gains of more than 1% so far in April, as traders have largely discounted the expectations of an imminent rate cut by the Fed.
Fed Dollar Jerome Powell.jpg
Courtesy: Criptonoticias
Data on the PCE price index, the Fed’s favorite inflation indicator, were released on Friday, with better-than-expected March results. which points to the rate cuts coming much later than expected in early 2024.
This week, the focus is on the Fed meeting that concludes on Wednesday. Everything indicates that the central bank will keep rates unchanged as it will offer a hawkish outlook, given the recent rigidity of US inflation.
Currency market: the sharp fall of the yen
The yen sank to 160 yen per dollar this Monday, its weakest level since April 1990. After briefly touching the 160.03 yen level, it has recovered to 156.5 against the dollar. According to ‘Reuters’, the Japanese authorities would have intervened to boost the currency.
Commercial sources have told the agency that they observed Japanese banks selling dollars for yen.
Operators are very attentive to any indication of action by Tokyo to sustain a currency that has fallen 11% against the dollar so far this year, as even the Bank of Japan’s exit from negative rates has failed to boost the currency.
The Asian stock markets ended the day positively today.
Source: Ambito
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