Dollar grapples with uncertainty, yen strengthens on inflation figures, Bitcoin rise in Asian trading
Date
2/28/2024 2:52:17 AM
(MENAFN) On Tuesday, the trajectory of the dollar remained uncertain as investors awaited the release of crucial data that could offer insights into the future direction of the US Federal Reserve's monetary policy. Meanwhile, the yen strengthened following the revelation of inflation figures exceeding the bank of Japan's target, fueling speculation that the central bank may reconsider its ultra-easy monetary stance by April.
Japan's consumer price inflation surpassed expectations, bolstering anticipation among some market participants that the Bank of Japan could commence tapering its accommodative policies. Consequently, the yen appreciated by 0.35 percent against the dollar, with the exchange rate reaching 150.18 yen per dollar. This uptick marked a notable contrast to mid-February when the dollar had climbed to 150.88 yen, its highest level against the Japanese currency since November 16.
In the realm of cryptocurrencies, Bitcoin witnessed a surge to its highest level in two years during Asian trading sessions, propelled by indications of significant purchases by major investors. Bitcoin's price soared to USD56,360 in recent transactions after peaking at USD57,036 at the outset of Asian trading, marking its highest level since late 2021. Similarly, Ether experienced an upswing, reaching USD3,232 after touching USD3,275, its highest level since April 2022.
Amidst these developments, the dollar index, which gauges the performance of the US currency against a basket of major counterparts including the yen, euro, and British pound, recorded a marginal decline of 0.05 percent to 103.71. This subtle movement underscores the prevailing uncertainty in currency markets as investors await further clarity on the economic landscape and central bank policies, with the upcoming data releases likely to influence market sentiment and trading dynamics.
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