Forex Market Update: Yen Weakens Against Dollar and Euro, BoJ Intervention Possible

2024-04-22 18:50:49

Around 18:15 GMT, the yen was down 0.11% against the dollar at 154.81 yen and was down 0.16% against the euro at 164.97 yen.

“We are on guard” for a possible intervention by the Bank of Japan “but I don’t think so yet,” admitted Brad Bechtel, director of foreign exchange at Jefferies.

More than the weakness of the yen, according to him, it is the strength of the dollar, helped by geopolitical concerns and doubts about the monetary policy of the US central bank (Fed).

“This is not an isolated move for the yen, and it is difficult” for the BoJ “to try to stem this wave,” added Brad Bechtel.

According to him, while the Bank of Japan meets on Friday, we will have to wait for an easing of the dollar and the dollar index for the BoJ to act.

With this in mind, traders will be focused on the release of the US PCE inflation index on Friday. “We should see a moderation” in prices, according to Mr. Bechtel.

However, the situation in the Middle East remains “an important variable” for currencies, supporting the dollar, a safe haven.

The pound remained gloomy in the face of optimism from the Bank of England (BoE) on inflation, reinforcing the prospect of a rate cut.

The British currency lost 0.12% to $1.2355, after hitting a new low on Monday since mid-November against the greenback at $1.2345.

The pound also fell 0.13% against the single European currency, to 86.25 pence per euro.

“Pound sterling continued to trade at weaker levels”, after its significant decline at the end of last week, mainly initiated by “the conciliatory comments from BoE Deputy Governor Dave Ramsden”, notes Lee Hardman, analyst at MUFG.

“The outlook for inflation in the UK” is “on a downward trend” and the April figure should probably “converge towards inflation in the eurozone”, Dave Ramsden said in Washington on Friday.

In terms of cryptocurrencies, bitcoin gained 3.09% to $66,656.

During the night from Friday to Saturday, the most famous cryptocurrency was subject to a “halving”, that is, the reduction by two of the bitcoin reward given to “miners”, the users who help the digital token work by to make their computing power available.

The issuance of new bitcoins is therefore reduced, which increases their scarcity, and tends to increase their prices.

Monday price Friday at 18:15 GMT 21:00 GMT EUR/USD 1.0656 EUR/JPY 164.97 164.78 EUR/CHF 0.9709 0.9699 EUR/GBP 0.8625 4.8625 USD/48 48 USD. 0.9112 0.9102 GBP/1.2355 USD 1.2370

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#Yen #hits #dollar #bitcoin #bolstered #halving

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