The Yen Nears Its Lowest Level in Two Weeks as the Australian Dollar Soars
The Japanese yen, characterized by volatile trading, hovered near its lowest level in two weeks on Wednesday, while the Australian dollar made notable gains, bolstered by an unexpected rise in inflation.
Australian Dollar Jumps Following Inflation Data
The Australian dollar surged by 0.7%, reaching $0.7109 after the release of data indicating an acceleration in inflation. This development fueled expectations of an interest rate hike, making the Australian currency the best performer during the Asian trading session.
Moderate Gains for Major Currencies
At the same time, the New Zealand dollar, British pound, and euro also experienced gains, albeit at a more moderate pace. This trend led to a decline in the US dollar, which fell to 1.1796 against the euro and 1.3520 against the British pound.
Persistent Pressure on the Yen
The yen remained under pressure after falling by 0.8% overnight, reaching 156.28 yen per dollar. This decline followed a report indicating that Japanese Prime Minister Sanae Takaichi expressed reservations about further interest rate hikes proposed by the Governor of the Bank of Japan.
Accommodative Signals in Monetary Policy
Additionally, the Japanese government announced on Wednesday the appointment of two renowned academics who favor a greater tolerance for inflation, with the aim of supporting growth, to the Board of the Bank of Japan. This decision is viewed as an additional indication of the future direction of the country’s monetary policy.
