PT Solid Gold Berjangka | Dollar Regains Momentum as Yen Struggles


Indeks Dolar Dolar AS PT SGB Solid Group SG Berjangka Solid Gold Berjangka


Solid Gold Berjangka | The dollar-yen exchange rate briefly lost value on Wednesday due to renewed speculation that the U.S. Federal Reserve would cut interest rates before the end of the year, but it turned slightly higher and then rallied again.The offshore yuan fell further from the more than three-month high it hit last week. The yuan exchange rate closed at 7.2247 per dollar.The yen was quoted at 154.75 per dollar, slightly back from last week’s peak of 151.86 per dollar.

Analysts said the intervention from Tokyo would be only a temporary respite for the yen, given that the interest rate differential between Japan and the U.S. remains strong.Bank of Japan Governor Kazuo Ueda said Wednesday that the central bank will scrutinize the impact of the yen’s move on inflation in guiding monetary policy, and Finance Minister Shunichi Suzuki repeated warnings that authorities are prepared to respond to overly volatile movements in the currency market.

If the dollar/yen were to rise sharply, the authorities would intervene in the market to support the yen,” Suzuki said. If the dollar/yen continues to rise modestly, they will not enter the market, but there is clearly a risk,” said Carol Kong, currency strategist at Commonwealth Bank of Australia.

The euro and the New Zealand dollar were down 0.02% each at $1.0752 and $0.6000, respectively.The dollar was steady at 105.41 against the U.S. dollar, slightly off the one-month low it hit last week.

Investors continue to focus on the pace and timing of Fed rate cuts, which will likely move the exchange rate. The latest weaker-than-expected U.S. jobs report and the U.S. central bank’s easing bias have reinforced the view that a rate cut will take place before the end of the year.

U.S. Federal Reserve Bank of Minneapolis President Neel Kashkari said Tuesday that it is premature to assert that inflation has definitely stalled, but that had little effect on the market’s assessment of a rate cut.

Rodrigo Catrill, senior FX strategist at National Australia Bank, said, “Fed Governor Kashkari’s comments were hawkish and put off a rate cut for the year.”

The pound fell 0.08% to $1.2499. The Bank of England’s policy decision will be made on Thursday, and it will be interesting to see how soon the central bank decides to cut rates.

Analysts expect the central bank to cut rates as early as June.

The Australian dollar fell 0.2% to $0.6585, also pressured by a weaker-than-expected hawkish outlook after the Reserve Bank of Australia left rates unchanged on Tuesday.

Source: Reuters