The dollar index, which measures the greenback against a basket of major currencies, was on track for its longest streak of declines since early March.The dollar index was lower on Monday for a fourth straight session as a softer-than-expected US jobs report last week supported recent comments from Federal Reserve Chair Jerome Powell, but the greenback strengthened against the yen after last week’s suspected interventions.
The data helped affirm comments from Powell after the Fed’s policy statement on Wednesday that rate increases remained unlikely. “The labour market is evidently more loose now than it was a year ago, but at the same time, these guys who are more hawkish could easily build arguments to make a case for higher for longer.”The yen was weaker against the greenback after last week notching its strongest weekly gain since early December 2022 following two rounds of suspected intervention from the Bank of Japan to pull the currency away from a 34-year low of 160.245 per dollar.On Monday, the yen weakened 0.
Still, “it’s pretty treacherous right now to be going long dollar yen,” said Wizman. “It’s not because FX intervention per se is effective, it’s just that if the BOJ thinks that US yields have peaked, not saying they have, but if they think that US yields have peaked, they’re going to be encouraged to try to intervene again.”
The yen has been under pressure as US interest rates have risen while Japan’s have remained near zero, pushing cash out of currency and into higher-yielding assets.
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Fuente: SABC News Online - 🏆 32. / 51 Leer más »