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Dollar Hits 34-Year High Against Yen Amid Fed Interest Rate Speculation – Market Watch

The dollar at one point hit 154.85 yen, the highest level in 34 years. Market participants remain aware of the possibility that the US Federal Reserve (Fed) will keep interest rates high for longer than expected, while they continue to watch for intervention from the Japanese authorities to prevent the yen from depreciating.

In late trade, the dollar/yen was up 0.1% at 154.81 yen. The price has moved slightly away from 155 yen, which is considered the intervention protection line. The monetary policy meeting at the Bank of Japan to be held this week is attracting attention.

Calvin Tse, Managing Director and Head of Macro Strategy for the Americas at BNP Paribas, said, “Japan’s Treasury believes that the fundamentals of the exchange rate are wrong, such as the sharp rise in US bond yields on the back of the dollar/yen appreciation . “I think they realized they were moving in that direction.” “If the driving force behind the rise in dollar/yen is a rise in US bond yields, I don’t think the Japanese authorities will intervene,” he said, adding, “If US bond yields start to fall, that will be there. be an opportunity for the Japanese authorities to act.”It will happen,” he said.

The dollar index against major currencies was slightly up at 106.13.

Electric vehicle (EV) giant Tesla will be announced within the week(TSLA.O) New tabopens a new taband Meta Platforms(META.O) New tabopens a new tabMicrosoft(MSFT.O) New tabopens a new tabalphabet(GOOGL.O) New Tabopens a new tabThe quarterly financial results attract attention. In addition, the first quarter of US gross domestic product (GDP) will be announced on the 25th, and the US personal consumption expenditure (PCE) price index will be released on the 26th.

The euro/dollar exchange rate was almost unchanged at $1.0651, while the pound/dollar exchange rate was down 0.1% at $1.2352.

Among crypto assets (virtual currencies), Bitcoin rose 3.6% to $66,384.

Government bond yields have remained virtually unchanged. In addition to this week’s $183 billion government bond auction, all eyes are on the economic data released later this week to determine when the Federal Reserve will cut interest rates.

US Treasury yields rose sharply as interest rate cut expectations faded after the March consumer price index (CPI) announced earlier this month was higher than expectation With the strong labor market also supporting the economy, the market is focusing on economic indicators to determine the direction of the Federal Reserve’s monetary policy.

This week, GDP statistics will be announced on the 25th and Personal Product Expenditure (PCE) will be announced on the 26th. In addition, auctions will be held for two-year bonds ($69 billion) on the 23rd, five-year bonds ($70 billion) on the 24th, and seven-year bonds ($44 billion) on the 25th.

Gennadiy Goldberg, head of US rates strategy at TD Securities in New York, said the focus this week is on a series of government bond auctions and the release of GDP and PCE data later this week.

In late trading, the 10-year bond yield was 4.621%. The yield on two-year bonds, which easily reflects the outlook for interest rates, was almost unchanged at 4.971%.

The yield gap between 2-year and 10-year bonds remains steady at -35 basis points (bp).

The stock closed higher. The quarterly results of major companies to be announced this week are drawing attention as a gauge of the health of the US economy.

S&P 500 index slips on expectations of delayed start of US interest rate cuts and tensions in the Middle East(.SPX)New Tabopens a new taband Nasdaq(.IXIC)New Tabopens a new tabThe stock had been declining for six days in a row, but it bounced back today.
All 11 major S&P 500 sectors rose, led by technology(.SPLRCT)New Tabopens a new taband financial stocks(.SPSY)New Tabopens a new tabThe increase was obvious.
This week Tesla(TSLA.O) New tabopens a new tabMetaplatforms(META.O) New tabopens a new tabMicrosoft(MSFT.O) New tabopens a new tabalphabet(GOOGL.O) New Tabopens a new tabetc. announcing their financial results.

Lamar Bieler, portfolio manager at Bieler & Co. in New Orleans, it was a buyback after the big selloff.

In terms of individual stocks, there is Alphabet, Amazon.com (AMZN.O) New Tabopens a new taban apple(AAPL.O) New Tabopens a new tabhas grown 0.5-1.5%.Nvidia(NVDA.O) New Tabopens a new tabincreased by 4.4%. It had fallen 10% the previous business day.
Tesla fell 3.4%. After the United States, the company reduced prices in China, Germany and other countries. A response to declining sales and increased price competition. See more

Gold prices fell for the first time in three business days on heavy selling as concerns about the spread of conflict in the Middle East eased. The settlement price (equal to the closing price) in the contract’s main month, June, was $2,346.40 per ounce, down $67.40 (2.79%) from the previous weekend.

Prices fell for the first time in three business days, with sales dominated by tensions in the Middle East and concerns about the economic outlook. The settlement price (equal to the closing price) of the May contract for the standard WTI standard US oil level was $82.85 per barrel, down $0.29 (0.35%) from the previous weekend. The June contract fell $0.32 to $81.90.

As concerns about the tense situation in the Middle East changed, crude oil prices fell briefly to the $81 level early this morning. After that, buying was done with a focus on supply and demand factors, such as technical buying and expectations of tight supply this summer, and although there were times when the stock rose into positive territory , the rebound was limited. The exchange of retaliatory attacks between Israel and Iran has calmed down, leading to speculation that both sides are trying to end the situation. Concerns that conflicts in the Middle East will spread and disrupt crude oil supplies have subsided. It was also pointed out that some countries that are members of the Organization of the Petroleum Exporting Countries (OPEC) have sufficient production capacity and are able to deal with supply disruptions.

This is a provisional value based on LSEG data. The previous day’s ratio may not match

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2024-04-22 22:19:00
#Market #Summary #22nd #Dollar #shortterm #yen #34year #high #yields #flat #stocks #rise

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