Yen strengthening dollar falling against all currencies
2022.12.22 06:57
Yen strengthening dollar falling against all currencies
Budrigannews.com – Given the risk-on sentiment, the U.S. dollar fell on Thursday, but demand for the Japanese yen remained high following the unexpected change in the Bank of Japan’s policy.
The, which compares the dollar to a basket of six other currencies, fell 0.4% to 103.460 at 03:25 ET (08:25 GMT), close to a six-month low.
After upbeat data on Wednesday showed that the United States rose to an eight-month high in December, the dollar traded lower on Thursday as a result of a rise in risk sentiment.
Later in the session, the release of third quarter U.S. growth, which is expected to remain at 2.9%, and the weekly, which is expected to rise slightly from the previous week, will draw attention.
Following the decision to allow the bond yield to move in a wider band, the yen fell 0.5 percent to 131.88, remaining close to a four-month high.
“Shutting the year above 130.00 might be a welcome improvement at the BoJ as it could flag that hypothesis on additional strategy standardization has – for the present – been held within proper limits,” expressed experts at ING, in a note.
The overall positive sentiment contributed to the 0.5% increase to 1.0655 elsewhere.
“We believe that as volatility begins to decrease, EUR/USD may find some stability around 1.0600 by year’s end. However, if market sentiment worsens, particularly on the energy side, a fall to levels below 1.0500 is possible,” ING added.
climbed by 0.5 percent to 1.2144, despite the fact that data on Thursday revealed that Britain’s economy contracted by slightly more than initially anticipated in the third quarter of this year.
The Office for National Statistics reported a quarterly decline of 0.3 percent in comparison to a previous estimate of 0.2 percent in the July-September quarter.
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“A recessionary environment and sensitivity to market instability may cause a return to the 1.15-1.18 range in cable,” ING added, “We continue to see mostly downside risks for the pound in the new year.”
The sentiment toward the yuan remained weighed down by the spread of COVID-19 throughout the country, which contributed to the risk-sensitive’s 0.8% increase to 0.6760 and a slight decline to 6.9802.
