Yen gains modestly benefiting from pause in U.S. dollar's upward movement
Date
11/20/2024 1:08:35 AM
(MENAFN) The Japanese yen gained modestly on Tuesday, benefiting from a pause in the U.S. dollar's upward movement following a wave of profit-taking after the dollar hit its highest level in a year. The yen traded at 154.47 per dollar, up 0.12%, recovering from losses seen in the previous session.
The yen’s rise followed remarks by bank of Japan Governor Kazuo Ueda, who did not offer strong signals regarding a potential interest rate hike in December. Rodrigo Catrill, chief currency strategist at National Australia Bank, noted that markets had expected a more hawkish tone from Ueda but he maintained his usual stance.
Since October, the yen has fallen by 7%, breaching the $156 level last week for the first time since July. This prompted traders to wait for possible intervention from Japanese authorities. Japanese Finance Minister Katsunobu Kato indicated that the government would address excessive fluctuations in the exchange rate appropriately.
Meanwhile, the U.S. dollar pulled back from one-year highs against a basket of currencies, allowing other currencies to recover. The British pound settled at $1.2670, and the dollar index rose by 0.07% to 106.29 after a 0.4% drop in the previous session.
The euro also bounced back to $1.0584 after hitting a one-year low last week. European Central Bank officials have expressed concern about the potential impact of new U.S. trade tariffs on the region’s economic growth.
Elsewhere, the Australian dollar was supported by comments from the Reserve Bank of Australia, which suggested that interest rates might stay unchanged or even rise in the future. Meanwhile, the New Zealand dollar strengthened to $0.5887, moving away from a one-year low reached on Monday.
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