NEW YORK: The Japanese yen rebounded on Thursday after the head of the Bank of Japan said the decision on whether to increase interest rates will be based on economic data, while overall movements in the market were subdued as traders waited for fresh catalysts.
Bank of Japan Governor Kazuo Ueda said the central bank will continue to raise interest rates if Japan makes progress in achieving its economic and price projections.
A report on Tuesday said Japanese Prime Minister Sanae Takaichi expressed reservations about additional interest rate hikes during her meeting with Ueda last week.
The yen strengthened 0.22 percent against the greenback to 155.99 per dollar. It had reached a two-week low of 156.82 on Wednesday.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.04 percent to 97.66, with the euro up 0.02 percent at USD1.1811.
Overall moves were muted, with traders continuing to gauge the outlook for trade tariffs, risk sentiment and the economy. “With currency markets lacking a clear catalyst for a decisive move out of current ranges, price action is slowing and most major pairs are trading nearly flat against yesterday’s fix,” said Karl Schamotta, chief market strategist at Corpay, in Toronto.
“The risk backdrop remains relatively supportive - Nvidia’s earnings confirmed continued strength in the artificial intelligence investment cycle, trade policy constraints are growing around the White House, and the US and global economies are proving resilient—but conviction among investors is low, and clear-cut directional trends are nearly absent,” he said.
Comments
Comments are closed for this article.