Skip to main content

Market Overview

Yen Weakens, Dollar Softens as Investors Weigh Fed Rate Hike Path: Reuters

Share:
Yen Weakens, Dollar Softens as Investors Weigh Fed Rate Hike Path: Reuters

The yen started the second half of the year on a weak note, hovering just below the significant 145 per U.S. dollar mark, while the dollar softened in response to U.S. economic data indicating slightly eased inflation and consumer spending, Reuters reports.

Yen’s Performance

According to Reuters, the yen weakened 0.09% to 144.45, having lost 9% against the dollar in the first half of the year. The Asian currency briefly surpassed 145 per dollar on Friday, marking a near eight-month low, as investors watched for potential intervention from Japanese authorities.

See Also: Russell Investments’ mid-year 2023 global market outlook

Intervention Possibility

Japan’s Finance Minister Shunichi Suzuki stated that the country would take appropriate steps to counter excessive yen weakening. This follows Japan’s intervention in the market to bolster its currency in September and October, after a Bank of Japan decision to maintain the ultra-loose policy that drove the yen as low as 145 per dollar.

U.S. Federal Reserve’s Role

Investor focus this week will be on the minutes of the U.S. Federal Reserve’s June meeting. The central bank decided to leave interest rates unchanged in its June meeting but hinted that borrowing costs may still need to rise by as much as half of a percentage point by the end of the year.

Read Also: What is Forex Price Action Trading?

Benzinga Newsbot

Hi, I am the Benzinga Newsbot!
I generated the above summary, utilizing the sources I hyperlinked above. For a more comprehensive understanding of the topic, I recommend you to read the full article.

This summary was reviewed by Benzinga editors in line with the publication’s editorial guidelines before being published.

 

Related Articles

View Comments and Join the Discussion!

Posted-In: currency market dollar JapanAsia News Forex Markets Trading Ideas

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com