Dollar-yen temporarily at 149.30 level, continues to decline = London exchange
In London morning trading, the dollar-yen pair continues to look for a downside. Recently, the low has extended to the 149.30 level. The cross yen has also fallen, giving the appearance of a strong yen. Euroyen updated its low to around 162.19. After hitting a low around 185.32 early on, the pound-yen price has declined slightly and is now trading around 185.70.
This week, there were signs of dollar selling such as slowing growth in the US consumer price index, weakness in a series of British economic indicators, and comments by ECB officials suggesting that interest rate hikes should be halted. The situation appears to be relatively inviting for yen repurchases, including expectations that interest rates will be cut early. Although the Bank of Japan is firmly maintaining its easing stance, there is a possibility that it may reconsider its negative interest rate policy depending on the developments in next year’s spring labor union. It seems possible that interest rate differentials between Japan and the US, Japan and Europe, etc. will be shaken by expectations that the counterparty currency will stop raising interest rates or start lowering them early.
USD/JPY 149.37 EUR/JPY 162.28 GBP/JPY 185.70
Author: MINKABU PRESS
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