Japanese Yen Weakens Near 150 Level
London:23 October 2023 (TraderMade): The Japanese Yen briefly approached the 150-per-dollar level, capturing attention in Asian financial markets on Monday. This fluctuation stemmed from the intricate interplay between expectations of a rising US Dollar and the possibility of Japanese authorities intervening in currency markets.
USDJPY
current status The USDJPY pair was 149.994 on Friday (October 20) and closed at 149.834. The pair softened briefly early Monday to 150.14 per dollar and settled at 149.93.
This level was last observed on October 3. It raised suspicions of intervention by the Bank of Japan (BOJ) to maintain the JPY above 150.
Other economic factors Geopolitical tensions in the Middle East,
highlighted by Israeli airstrikes in Gaza and the US deployment of additional military assets to the region, fueled uncertainty among investors.
The financial world is braced for the European Central Bank meeting and upcoming US GDP data.
Despite a 6.7% rise in the trade-weighted dollar index since mid-July, its recent movements have been relatively stable. Financial analysts note this stability, considering the solid foundations of high yields, robust growth, and geopolitical concerns.
The limited fluctuations in the dollar index were partially due to the stability of the yen and Chinese yuan, both significant components of the DXY trade index.
Oil prices dipped by over $1 on Monday due to diplomatic efforts to contain the Middle East conflict, easing concerns about oil supply disruptions.
