AIRLINK 173.15 Increased By ▲ 15.74 (10%)
BOP 10.65 Increased By ▲ 0.28 (2.7%)
CNERGY 8.52 Increased By ▲ 0.20 (2.4%)
CPHL 97.46 Increased By ▲ 4.57 (4.92%)
FCCL 47.25 Increased By ▲ 0.52 (1.11%)
FFL 15.42 Increased By ▲ 0.54 (3.63%)
FLYNG 28.13 Increased By ▲ 1.15 (4.26%)
HUBC 138.91 Increased By ▲ 4.90 (3.66%)
HUMNL 12.81 Increased By ▲ 0.29 (2.32%)
KEL 4.54 Increased By ▲ 0.33 (7.84%)
KOSM 5.55 Increased By ▲ 0.16 (2.97%)
MLCF 62.26 Increased By ▲ 1.38 (2.27%)
OGDC 214.75 Increased By ▲ 6.23 (2.99%)
PACE 5.55 Increased By ▲ 0.15 (2.78%)
PAEL 44.86 Increased By ▲ 4.08 (10%)
PIAHCLA 18.70 Decreased By ▼ -0.10 (-0.53%)
PIBTL 10.74 Increased By ▲ 0.76 (7.62%)
POWER 12.26 Increased By ▲ 0.30 (2.51%)
PPL 173.87 Increased By ▲ 5.10 (3.02%)
PRL 36.22 Increased By ▲ 1.19 (3.4%)
PTC 23.56 Increased By ▲ 0.57 (2.48%)
SEARL 95.31 Increased By ▲ 2.21 (2.37%)
SSGC 39.13 Increased By ▲ 3.56 (10.01%)
SYM 14.02 Increased By ▲ 0.36 (2.64%)
TELE 7.23 Increased By ▲ 0.28 (4.03%)
TPLP 10.29 Increased By ▲ 0.29 (2.9%)
TRG 64.68 Increased By ▲ 4.01 (6.61%)
WAVESAPP 10.04 Increased By ▲ 0.34 (3.51%)
WTL 1.33 Increased By ▲ 0.03 (2.31%)
YOUW 3.70 Increased By ▲ 0.05 (1.37%)
BR100 12,492 Increased By 252.4 (2.06%)
BR30 37,694 Increased By 1300.9 (3.57%)
KSE100 116,189 Increased By 2036.1 (1.78%)
KSE30 35,750 Increased By 549.8 (1.56%)

SYDNEY: The Australian and New Zealand dollars clung onto gains against the yen on Thursday as traders braced for an interest rate decision from the Bank of Japan, while tariff uncertainty kept the two mostly steady against the greenback.

The Aussie held at 98.07 yen, having rallied 0.7% overnight to a two-week top of 98.33 yen, while the kiwi hovered at 88.55 yen, after rising for a fourth successive session to 88.80 yen.

Currency movement has been generally modest except against the yen which has come under broad pressure ahead of the BOJ decision on Friday.

Swaps imply a 93% probability that the BOJ could hike its policy interest rate by 25 basis points to 0.5% but markets are finding its subsequent move harder to predict.

“Markets seem to view the lack of immediate US tariffs on Japan as supporting the case for a 25bp interest rate hike from the BOJ,” said Carol Kong, a currency strategist at the Commonwealth Bank of Australia.

“Even if the BOJ decides to hike, the potential for economic and market disruptions from US policy making suggests the hike may be accompanied by a dovish tone,” said Kong, adding that the risks facing AUD/JPY are skewed to the upside.

Australia, NZ dollars buffeted by tariff talk; NZ inflation benign

Against the US dollar, the Aussie was little changed at $0.6269, having been flat for two days as investors wait for more clarity from US President Donald Trump on his tariff plans.

The kiwi, on the other hand, held at $0.5666, after slipping 0.3% overnight on a tame reading on consumer prices.

That reinforced the case for a half-point reduction in the 4.25% cash interest rate, which is almost fully priced in, when the Reserve Bank of New Zealand meets on Feb. 19.

Investors see the rate settling at 3.0% or 3.25% by the end of the year.

Data showed on Thursday that the number of people leaving New Zealand hit a record level in the year to November, highlighting the current economic downturn.

Australia’s fourth-quarter consumer price report is due next week and analysts are hopeful core inflation will slow enough to green light an interest rate reduction from the Reserve Bank of Australia when it meets on Feb. 18.

Futures imply a 78% chance of a quarter-point cut in the 4.35% cash rate, and imply a relatively shallow easing cycle of just 75 basis points overall.

Comments

200 characters