The dollar had a rough start to the week, falling to a seven-month low against a basket of significant rivals in Asian trade before stabilizing. The yen was in special focus since traders were betting that the Bank of Japan would further modify its yield control strategy.
The dollar index (DXY), which measures the value of the dollar against a basket of currencies, dropped to a seven-month low of 101.77 thanks to early strength from the British pound and the Japanese yen. This continued the selloff that began last week after data revealed that US consumer prices fell in December for the first time in more than 2-1/2 years.
Investors are becoming more and more convinced that the Fed is reaching the conclusion of its rate-hike cycle and that rates will not rise as high as originally anticipated as the world’s largest economy’s decades-high inflation shows signs of moderating.
The Fed’s rapid rate hikes were a major factor in the dollar index’s 8% climb last year, which was followed by a decline as concerns of inflation peaking caused it.
BoJ Under Pressure for Ultra-Loose Stance as Yen Strengthens
The Japanese yen has been a special focus this week for currency markets because of speculation that the Bank of Japan may make additional changes to, or completely abandon, its yield control policy at a meeting slated to end Wednesday.
Earlier today, the dollar fell to a more than seven-month low against the yen before rebounding and closing at 128.4 yen, up 0.4%.
Meanwhile, Haruhiko Kuroda, the governor of the BOJ, will retire in April. The BOJ has come under pressure from investors to change its ultra-loose monetary policy, which has allowed the yield on Japan’s benchmark 10-year government bonds to move beyond the new ceiling for two sessions.
Finally, due to a holiday, US markets are closed on Monday, which results in light trade.
You can purchase Lucky Block here. Buy LBLOCK
- Broker
- Min Deposit
- Score
- Visit Broker
- Award-winning Cryptocurrency trading platform
- $100 minimum deposit,
- FCA & Cysec regulated
- 20% welcome bonus of upto $10,000
- Minimum deposit $100
- Verify your account before the bonus is credited
- Over 100 different financial products
- Invest from as little as $10
- Same-day withdrawal is possible
- Fund Moneta Markets account with a minimum of $250
- Opt in using the form to claim your 50% deposit bonus
Learn to Trade
Never Miss A Trade Again
Signal Notification
Real-time signal notifications whenever a signal is opened, closes or Updated
Get Alerts
Immediate alerts to your email and mobile phone.
Entry Price Levels
Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.