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Yen rebounds after repeated warnings from Japanese authorities
The Japanese yen rose in Asian trade on Tuesday against a basket of major rivals, rebounding against the dollar once more and recovering from a five-month low.
The gains come after repeated warnings from Japanese authorities and hints at impending intervention to boost the local currency if needed.
The Price
The USD/JPY pair fell 0.15% once more to 156.93 yen per dollar, with a session-high at 157.39.
The yen lost 0.5% yesterday against the dollar, resuming losses and approaching a five-month low at 157.92.
The losses come as US 10-year treasury yields rebounded to seven-month highs, renewing concerns about a wide Japan-US yields gap.
Japanese Authorities
Japan’s finance minister Katsunubo Kato expressed concerns on Friday from sharp movements in the forex market, led by speculators, and asserted that authorities will confront such heavy movements.
It’s quite rare for Japanese officials to directly express concerns about the forex market, which indicates readiness to intervene if necessary.
Main Inflation
Earlier Tokyo data showed main consumer prices rose 2.7%% in November, beating estimates of 2.6%, and up from 2.3% in October.
Following the data, the odds of a 0.25% interest rate hike by the Bank of Japan in January rose from 45% to 55%.
Ripple declines 4% amid pressure on crypto assets
Ripple lost ground on Monday amid weak risk appetite and tepid demand on crypto assets before the end of 2024 with investors preparing to reconfigure their wallets.
Earlier data showed the US consumer confidence index fell to 104.7 in December from 111.7 in the previous reading, while analysts expected an uptick to 112.9.
The Federal Reserve decided to cut interest rates by 25 basis points last week after two consecutive rate cuts in previous meetings.
The Fed hinted at a slowed down pace of interest rate cuts in 2025 after revealing in its future outlook a total of only 50 basis points of interest rate cuts next year as inflation continues to persist.
Ripple
On trading, Ripple tumbled 3.7% as of 18:43 GMT to $2.17 on Coinmarketcap.
Loonie stabilizes after GDP data
The Canadian dollar stabilized against most major rivals on Monday following a batch of positive data.
Canada’s GDP grew 0.3% m/m in October, while analysts expected a growth rate of 0.2%.
The CAD/USD pair was little changed as of 18:38 GMT at 0.6959.
Aussie
The Australian dollar was also little changed against its US counterpart at 0.6249 as of 18:39 GMT.
US Dollar
The dollar index rose 0.4% as of 18:28 GMT to 108.06, with a session-high at 108.2, and a low at 107.6.
The US consumer confidence index fell to 104.7 in December from 111.7 in the previous reading, while analysts expected an uptick to 112.9.
The Federal Reserve decided to cut interest rates by 25 basis points last week after two consecutive rate cuts in previous meetings.
The Fed hinted at a slowed down pace of interest rate cuts in 2025 after revealing in its future outlook a total of only 50 basis points of interest rate cuts next year as inflation continues to persist.
Wall Street declines as the week opens up
US stock indices fell on Monday, the first session in a truncated week of trading due to Christmas, as investors prepare for holidays.
The Federal Reserve decided to cut interest rates by 25 basis points last week after two consecutive rate cuts in previous meetings.
The Fed hinted at a slowed down pace of interest rate cuts in 2025 after revealing in its outlook a total of only 50 basis points of interest rates next year as inflation persists.
On trading, Dow Jones fell 0.5%, or 244 points as of 15:17 GMT to 42595 points, as S&P 500 fell 0.2%, or 14 points to 5917 points, as NASDAQ slipped 0.1%, or 15 points to 19555 points.