Yen Slumps to Multi-Decade Lows
London: 15 April 2024 (TraderMade): The foreign exchange market is witnessing a tug-of-war today, with the US Dollar (USD) strengthening on diverging central bank policies and the Japanese Yen (JPY) sinking to multi-decade lows. Geopolitical tensions in the Middle East cast a shadow, but the focus remains on interest rates.
The US Dollar and Japanese Yen are top losers in the G10 forex landscape today, losing against other major currencies. The USDJPY pair surged 0.51% to 153.94101.
Dollar Buoyed by Hawkish Fed
The US Dollar is strengthening as expectations of aggressive rate cuts by the Federal Reserve fade. This anticipation has widened the interest rate gap between the US and other economies, making the USD more attractive.
Yen Weakens Despite Safe-Haven Status
The Japanese Yen, traditionally a safe haven, is surprisingly the biggest loser today. The Bank of Japan's commitment to ultra-low interest rates continues to undermine the Yen.
Geopolitical Jitters Keep Markets on Edge
The recent attack by Iran on Israel has injected nervousness into the markets. Investors are waiting to see Israel's response, which could lead to further volatility.
