AVN 64.90 Decreased By ▼ -0.10 (-0.15%)
BAFL 31.25 Increased By ▲ 0.10 (0.32%)
BOP 4.77 Increased By ▲ 0.06 (1.27%)
CNERGY 3.93 Increased By ▲ 0.05 (1.29%)
DFML 13.48 Decreased By ▼ -0.22 (-1.61%)
DGKC 41.80 Increased By ▲ 0.53 (1.28%)
EPCL 46.80 Increased By ▲ 0.11 (0.24%)
FCCL 11.41 Decreased By ▼ -0.01 (-0.09%)
FFL 5.10 Increased By ▲ 0.06 (1.19%)
FLYNG 5.89 Increased By ▲ 0.07 (1.2%)
GGL 9.95 No Change ▼ 0.00 (0%)
HUBC 64.65 Increased By ▲ 0.55 (0.86%)
HUMNL 5.68 Increased By ▲ 0.03 (0.53%)
KAPCO 27.98 Increased By ▲ 0.18 (0.65%)
KEL 2.17 Increased By ▲ 0.04 (1.88%)
LOTCHEM 24.55 Increased By ▲ 0.25 (1.03%)
MLCF 21.75 Increased By ▲ 0.35 (1.64%)
NETSOL 84.29 Increased By ▲ 0.09 (0.11%)
OGDC 87.97 Increased By ▲ 0.03 (0.03%)
PAEL 11.09 Increased By ▲ 0.19 (1.74%)
PIBTL 4.20 Increased By ▲ 0.02 (0.48%)
PPL 77.00 Decreased By ▼ -0.70 (-0.9%)
PRL 13.70 Increased By ▲ 0.08 (0.59%)
SILK 0.91 Increased By ▲ 0.02 (2.25%)
SNGP 41.61 Decreased By ▼ -0.32 (-0.76%)
TELE 5.97 Increased By ▲ 0.10 (1.7%)
TPLP 15.75 Decreased By ▼ -0.03 (-0.19%)
TRG 111.70 Decreased By ▼ -0.60 (-0.53%)
UNITY 13.95 No Change ▼ 0.00 (0%)
WTL 1.14 Increased By ▲ 0.01 (0.88%)
BR100 4,060 Increased By 12.4 (0.31%)
BR30 14,506 Increased By 38.9 (0.27%)
KSE100 40,751 Increased By 77.7 (0.19%)
KSE30 15,231 Increased By 40.3 (0.27%)
Follow us

TOKYO: The dollar hung close to a 32-year peak versus the yen on Wednesday while edging up from a two-week trough against a basket of major peers as traders weighed improved risk sentiment against the prospect of aggressive Federal Reserve rate hikes.

Sterling consolidated in the middle of its trading range this week as the market digested the British government’s fiscal policy reversal and the Bank of England’s decision not to sell any longer-duration gilts this year.

The euro hovered close to a two-week high.

The dollar pushed as high as 149.395 yen overnight for the first time since August 1990, before last trading at 149.18 early in Wednesday’s Asian session.

Traders are on high alert for the Ministry of Finance and Bank of Japan to step into the market again, as the currency pair pushes toward the key psychological barrier at 150.

A cross of 145 about a month ago spurred the first yen-buying intervention since 1998.

Japanese Finance Minister Shunichi Suzuki said on Wednesday that he was checking currency rates “meticulously” and with more frequency, local media reported.

The dollar, which currently reigns as the safe-haven currency of choice, has sagged this week amid the bear rally in equities globally following some upbeat earnings.

But underlying support continues to come from market pricing for two more 75 basis point hikes from the Fed this year as it focuses on red-hot inflation, even at the risk of sparking a recession.

Fiscal uncertainty in Britain is also clouding the outlook for bond markets globally.

The dollar index - which measures the currency against six peers including the yen, sterling and euro - edged up to 112.01, after dropping to the lowest since Oct. 6 at 111.76 overnight.

Dollar at 24-year peak to yen after US yields jump; sterling choppy

It marked a multi-decade peak at 114.78 at the end of September. “We doubt that this is more than a modest pause in the dollar’s bull run,” said Sean Callow, a currency strategist at Westpac in Sydney, who expects a retest of the peak into November.

On the yen, “intervention risk remains present, since the MOF has already crossed the Rubicon (but) its purpose is surely only to limit the scale of speculative positioning rather than driving a sustained reversal,” Callow said.

“A number as round as 150 will probably take some work to break short-term,” but given the BOJ’s position as the only developed-market central bank still pursuing a negative interest rate policy, “it’s hard to see why the pair wouldn’t extend into the 150-155 area,” Callow added.

Meanwhile, sterling gained 0.27% to $1.1349, rebounding from a 0.34% decline in the previous session.

The currency initially climbed on Tuesday following a Financial Times report that the Bank of England would delay quantitative tightening, only to slide after the Bank called the article “inaccurate.”

The BoE said it would start selling some of its huge stock of British government bonds from Nov. 1, but would not sell this year any longer-duration gilts that have been at the center of market volatility in the wake of the government’s “mini budget.”

The euro was about flat at $0.9857, hanging just under Tuesday’s high of $0.98755, a level last seen on Oct. 6.

Economists in a Reuters poll predict another 75 basis point rate hike from the European Central Bank on Thursday of next week.

The New Zealand dollar remained elevated following Tuesday’s blowout consumer price data, which raises expectations for continued aggressive tightening by the Reserve Bank.

The currency last traded 0.19% higher at $0.5695, close to the previous session’s two-week high of $0.5719. The Aussie changed hands at $0.6322, up 0.12% from Tuesday.


Comments are closed.

Dollar firm near 32-peak vs yen despite intervention risks; sterling treads water

Govt team tries to persuade IMF to unlock lending

Intra-day update: rupee falls against US dollar

Fitch says PKR to further weaken

US, India partnership targets arms and AI to compete with China

Paracetamol: govt to allow increase in price

Peshawar attack: ’Who brought the terrorists back?, asks PM Shehbaz

Former CM Parvez Elahi claims his residence raided by police

Eight rockets fired at Turkish base in Iraq

Govt plans to convert Rs800bn PHL debt into public debt

Jul-Dec: govt has borrowed $5.595bn