The US dollar surged to three-month highs on Tuesday, propelled by robust inflation data that exceeded economists' expectations for January. <o:p></o:p>

According to Reuters, the Consumer Price Index (CPI) reported a 0.3 per cent increase on a monthly basis, surpassing the 0.2 per cent forecast. <o:p></o:p>

Year-on-year, the CPI rose by 3.1 per cent, exceeding the estimated 2.9 per cent growth. <o:p></o:p>

These figures reinforced market expectations that the Federal Reserve would maintain interest rates steady in March, boosting the dollar's strength.<o:p></o:p>

"The key message from today's CPI is that it's slowing but less than expected," Dec Mullarkey, Managing Director at SLC Management in Boston told Reuters.<o:p></o:p>

He highlighted that the reading supported the Fed's decision to await further assurance that inflation remained contained. <o:p></o:p>

As a result, the dollar index surged to a three-month high of 104.95, indicating a strong performance against a basket of major currencies. <o:p></o:p>

It was last up 0.7 per cent at 104.89, poised for its most substantial one-day gain since early February.<o:p></o:p>

The greenback's rally extended beyond inflation data, surpassing 150 yen for the first time since November. <o:p></o:p>

Analysts noted that the yen, which had depreciated over 6 per cent against the dollar this year, faced persistent pressure amid revised expectations of the Federal Reserve's monetary policy. <o:p></o:p>

The dollar's strength against the yen prompted speculation of potential intervention by Japanese officials to stabilise the currency.<o:p></o:p>

Market analysts emphasised the market's response to the inflation data, with Federal funds futures indicating no rate cut in March and a lower than 50 per cent probability of easing in May. <o:p></o:p>

Expectations aligned with the Fed's projections, suggesting around three rate cuts this year, as reflected in the "dot plot" released in December. <o:p></o:p>

Analysts anticipate reduced volatility in the market as expectations align with the Fed's forecasts.<o:p></o:p>

In addition to the dollar's surge, the euro depreciated by 0.6 per cent to $1.0707, reaching its lowest level since mid-November. <o:p></o:p>

Meanwhile, in the cryptocurrency market, bitcoin touched $50,383, its highest level since December 2021, before dipping below $50,000 following the CPI data release. <o:p></o:p>

Despite this, bitcoin has experienced an 18 per cent increase this year, supported by regulatory approvals for US-listed exchange-traded funds.<o:p></o:p>

Looking ahead, economists anticipate the US retail sales report, scheduled for Thursday. <o:p></o:p>

Recent forecasts suggest a potential decline of 0.1 per cent for January, following a 0.6 per cent rise in December. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

The US dollar surged to three-month highs on Tuesday, propelled by robust inflation data that exceeded economists' expectations for January. According to Reuters, the Consumer Price Index (CPI) reported a 0.

The US dollar surged to three-month highs on Tuesday, propelled by robust inflation data that exceeded economists' expectations for January. According to Reuters, the Consumer Price Index (CPI) reported a 0.3 per cent increase on a monthly basis, surpassing the 0.2 per cent forecast. Year-on-year, the CPI rose by 3.1 per cent, exceeding the estimated 2.9 per cent growth. These figures reinforced market expectations that the Federal Reserve would maintain interest rates steady in March, boosting the dollar's strength. "The key message from today's CPI is that it's slowing but less than expected," Dec Mullarkey, Managing Director at SLC Management in Boston told Reuters. He highlighted that the reading supported the Fed's decision to await further assurance that inflation remained contained. As a result, the dollar index surged to a three-month high of 104.95, indicating a strong performance against a basket of major currencies. It was last up 0.7 per cent at 104.89, poised for its most substantial one-day gain since early February. The greenback's rally extended beyond inflation data, surpassing 150 yen for the first time since November. Analysts noted that the yen, which had depreciated over 6 per cent against the dollar this year, faced persistent pressure amid revised expectations of the Federal Reserve's monetary policy. The dollar's strength against the yen prompted speculation of potential intervention by Japanese officials to stabilise the currency. Market analysts emphasised the market's response to the inflation data, with Federal funds futures indicating no rate cut in March and a lower than 50 per cent probability of easing in May. Expectations aligned with the Fed's projections, suggesting around three rate cuts this year, as reflected in the "dot plot" released in December. Analysts anticipate reduced volatility in the market as expectations align with the Fed's forecasts. In addition to the dollar's surge, the euro depreciated by 0.6 per cent to $1.0707, reaching its lowest level since mid-November. Meanwhile, in the cryptocurrency market, bitcoin touched $50,383, its highest level since December 2021, before dipping below $50,000 following the CPI data release. Despite this, bitcoin has experienced an 18 per cent increase this year, supported by regulatory approvals for US-listed exchange-traded funds. Looking ahead, economists anticipate the US retail sales report, scheduled for Thursday. Recent forecasts suggest a potential decline of 0.1 per cent for January, following a 0.6 per cent rise in December. (With inputs from Reuters)

US dollar hits 3-month high on strong inflation data, surpasses 150 yen mark

The yen found itself hovering near a 10-week low on Friday, while the dollar continued its upward trajectory towards a fourth consecutive weekly advance. <o:p></o:p>

According to a Reuters report, the currency market witnessed adjustments as traders recalibrated their expectations concerning the timing of interest rate changes by the Bank of Japan (BOJ) and the potential for rate cuts by the Federal Reserve.<o:p></o:p>

The yen, barely flinching after Japanese Finance Minister Shunichi Suzuki's statement that he was "watching FX moves carefully," remained little changed at 149.315 per dollar in early Asian trading. <o:p></o:p>

The yen's lack of response to Suzuki's warning underscores the nuanced considerations at play in the currency market. <o:p></o:p>

Meanwhile, BOJ Deputy Governor Shinichi Uchida's recent remarks contributed to the yen's weakened position, stating that it is "hard to imagine" a rapid increase in rates even after ending the negative interest rate policy.<o:p></o:p>

In the realm of the dollar, the dollar index, measuring the currency against six major peers, stood steady at 104.15. <o:p></o:p>

The dollar's resilience was evident as it gained 0.1 per cent following fresh data pointing to the robustness of the US labour market. <o:p></o:p>

This follows a week where the dollar index has climbed 0.18 per cent, propelled by strong monthly payrolls data and a hawkish stance from Fed Chair Jerome Powell. <o:p></o:p>

Traders, once anticipating early Fed rate cuts, now lay just 16.5 per cent odds for a rate cut at the Fed's next policy meeting in March, a significant shift from 65.9 per cent odds a month ago.<o:p></o:p>

Reuters cited Richard Franulovich, Westpac's head of foreign exchange strategy, who predicts a potential rally toward 105.50 for the dollar index, emphasising latent upside fuel for the US currency. <o:p></o:p>

He notes that while pricing for the March Federal Open Market Committee (FOMC) has been reduced, there is still potential for a USD rally in subsequent FOMC meetings. <o:p></o:p>

Franulovich anticipates US resilience extending well into 2024, contributing to a potentially bumpy disinflation last mile.<o:p></o:p>

Turning attention to other currencies, the euro remained relatively stable at $1.0774, and the sterling showed little movement at $1.2619. Both currencies demonstrated resilience amid efforts by the European Central Bank and Bank of England officials to counter market expectations of early rate reductions. <o:p></o:p>

New Zealand's dollar, on the other hand, gained 0.34 per cent to $0.6117, supported by bets for a delayed start to Reserve Bank rate cuts or the potential for further hikes, following stronger-than-forecast job market data.<o:p></o:p>

In the realm of cryptocurrency, bitcoin traded little changed at around $45,300, maintaining its position as a significant player in the ever-evolving financial landscape. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

The yen found itself hovering near a 10-week low on Friday, while the dollar continued its upward trajectory towards a fourth consecutive weekly advance. According to a Reuters report, the currency market witnessed adjustments as traders recalibrated their expectations concerning the timing of interest rate changes by the Bank of Japan (BOJ) and the potential for rate cuts by the Federal Reserve.

The yen found itself hovering near a 10-week low on Friday, while the dollar continued its upward trajectory towards a fourth consecutive weekly advance. According to a Reuters report, the currency market witnessed adjustments as traders recalibrated their expectations concerning the timing of interest rate changes by the Bank of Japan (BOJ) and the potential for rate cuts by the Federal Reserve. The yen, barely flinching after Japanese Finance Minister Shunichi Suzuki's statement that he was "watching FX moves carefully," remained little changed at 149.315 per dollar in early Asian trading. The yen's lack of response to Suzuki's warning underscores the nuanced considerations at play in the currency market. Meanwhile, BOJ Deputy Governor Shinichi Uchida's recent remarks contributed to the yen's weakened position, stating that it is "hard to imagine" a rapid increase in rates even after ending the negative interest rate policy. In the realm of the dollar, the dollar index, measuring the currency against six major peers, stood steady at 104.15. The dollar's resilience was evident as it gained 0.1 per cent following fresh data pointing to the robustness of the US labour market. This follows a week where the dollar index has climbed 0.18 per cent, propelled by strong monthly payrolls data and a hawkish stance from Fed Chair Jerome Powell. Traders, once anticipating early Fed rate cuts, now lay just 16.5 per cent odds for a rate cut at the Fed's next policy meeting in March, a significant shift from 65.9 per cent odds a month ago. Reuters cited Richard Franulovich, Westpac's head of foreign exchange strategy, who predicts a potential rally toward 105.50 for the dollar index, emphasising latent upside fuel for the US currency. He notes that while pricing for the March Federal Open Market Committee (FOMC) has been reduced, there is still potential for a USD rally in subsequent FOMC meetings. Franulovich anticipates US resilience extending well into 2024, contributing to a potentially bumpy disinflation last mile. Turning attention to other currencies, the euro remained relatively stable at $1.0774, and the sterling showed little movement at $1.2619. Both currencies demonstrated resilience amid efforts by the European Central Bank and Bank of England officials to counter market expectations of early rate reductions. New Zealand's dollar, on the other hand, gained 0.34 per cent to $0.6117, supported by bets for a delayed start to Reserve Bank rate cuts or the potential for further hikes, following stronger-than-forecast job market data. In the realm of cryptocurrency, bitcoin traded little changed at around $45,300, maintaining its position as a significant player in the ever-evolving financial landscape. (With inputs from Reuters)

Yen nears 10-week low, dollar strengthens as traders adjust rate expectations

Japan's leading automaker, Toyota has revised its full fiscal year profit forecast upwards following robust earnings in the October to December quarter, where profits nearly doubled compared to the previous year. <o:p></o:p>

According to media reports, the third-quarter profit soared to 1.36 trillion yen ($9 billion), marking a substantial recovery from the setbacks faced during the computer chip production disruptions triggered by the COVID-19 pandemic. <o:p></o:p>

The company's solid performance over the first nine months of the fiscal year resulted in 3.9 trillion yen ($26 billion) profit, more than double the figure achieved in the preceding fiscal year.<o:p></o:p>

A key factor contributing to Toyota's success is the favourable exchange rate, with a weak yen boosting the value of overseas earnings when converted into yen. <o:p></o:p>

The recent exchange rate of about 148 yen to the dollar, compared to 140 yen a year ago, played a pivotal role in enhancing the company's financial performance. <o:p></o:p>

Quarterly sales also experienced an uptick, rising by 23 per cent to 12.04 trillion yen ($81 billion) from 9.75 trillion yen.<o:p></o:p>

Toyota, headquartered in Toyota City, central Japan, responded to its performance by revising its full fiscal year profit forecast to 4.5 trillion yen ($30 billion), surpassing its earlier projection of 3.95 trillion yen ($27 billion). <o:p></o:p>

Similarly, the sales projection for the fiscal year was adjusted to 43.5 trillion yen ($294 billion), up from the initial estimate of 43 trillion yen ($290 billion). <o:p></o:p>

The company attributes these positive adjustments to cost-cutting measures, strategic marketing efforts, and the favourable effects of currency exchange rates.<o:p></o:p>

However, amid the overall positive outlook, Toyota did not raise its vehicle sales forecast for the fiscal year. <o:p></o:p>

Instead, it slightly reduced the forecast to 9.45 million vehicles, compared to the previous expectation of 9.6 million vehicles. <o:p></o:p>

Despite this adjustment, the forecast still exceeds the previous fiscal year's sales of 8.8 million vehicles, showcasing Toyota's resilience in navigating challenges, particularly the global shortage of computer chips that has affected the entire automotive industry.<o:p></o:p>

The impact of the chip shortage is notably felt within Toyota's group, with Daihatsu Motor Co., responsible for manufacturing small models, temporarily suspending production under Japanese government orders. <o:p></o:p>

The automaker admitted to falsifying safety tests for decades, leading to a scandal that surfaced in April 2023. <o:p></o:p>

While the impact on Toyota's overall sales and profits is expected to be limited due to Daihatsu's relatively small contribution, the company acknowledges a potential decline in Japanese sales due to the subsidiary's issues, posing a challenge to Toyota's brand image.<o:p></o:p>

Despite the challenges posed by the Daihatsu scandal and similar irregularities in other group companies, including Hino and Toyota Industries, Toyota remains optimistic about its overall financial outlook. <o:p></o:p>

Japan's leading automaker, Toyota has revised its full fiscal year profit forecast upwards following robust earnings in the October to December quarter, where profits nearly doubled compared to the previous year.

Japan's leading automaker, Toyota has revised its full fiscal year profit forecast upwards following robust earnings in the October to December quarter, where profits nearly doubled compared to the previous year. According to media reports, the third-quarter profit soared to 1.36 trillion yen ($9 billion), marking a substantial recovery from the setbacks faced during the computer chip production disruptions triggered by the COVID-19 pandemic. The company's solid performance over the first nine months of the fiscal year resulted in 3.9 trillion yen ($26 billion) profit, more than double the figure achieved in the preceding fiscal year. A key factor contributing to Toyota's success is the favourable exchange rate, with a weak yen boosting the value of overseas earnings when converted into yen. The recent exchange rate of about 148 yen to the dollar, compared to 140 yen a year ago, played a pivotal role in enhancing the company's financial performance. Quarterly sales also experienced an uptick, rising by 23 per cent to 12.04 trillion yen ($81 billion) from 9.75 trillion yen. Toyota, headquartered in Toyota City, central Japan, responded to its performance by revising its full fiscal year profit forecast to 4.5 trillion yen ($30 billion), surpassing its earlier projection of 3.95 trillion yen ($27 billion). Similarly, the sales projection for the fiscal year was adjusted to 43.5 trillion yen ($294 billion), up from the initial estimate of 43 trillion yen ($290 billion). The company attributes these positive adjustments to cost-cutting measures, strategic marketing efforts, and the favourable effects of currency exchange rates. However, amid the overall positive outlook, Toyota did not raise its vehicle sales forecast for the fiscal year. Instead, it slightly reduced the forecast to 9.45 million vehicles, compared to the previous expectation of 9.6 million vehicles. Despite this adjustment, the forecast still exceeds the previous fiscal year's sales of 8.8 million vehicles, showcasing Toyota's resilience in navigating challenges, particularly the global shortage of computer chips that has affected the entire automotive industry. The impact of the chip shortage is notably felt within Toyota's group, with Daihatsu Motor Co., responsible for manufacturing small models, temporarily suspending production under Japanese government orders. The automaker admitted to falsifying safety tests for decades, leading to a scandal that surfaced in April 2023. While the impact on Toyota's overall sales and profits is expected to be limited due to Daihatsu's relatively small contribution, the company acknowledges a potential decline in Japanese sales due to the subsidiary's issues, posing a challenge to Toyota's brand image. Despite the challenges posed by the Daihatsu scandal and similar irregularities in other group companies, including Hino and Toyota Industries, Toyota remains optimistic about its overall financial outlook.

Toyota boosts profit outlook as earnings surge, fuelled by weak yen: Report

The yen ended its worst week against the U.S. Dollar in sixteen months as the bank of Japan's likely decision to abandon negative rates was tempered by the economic effects of a strong earthquake. Following the release of important U.S. Labour and ism services data, the currency fluctuated sharply, falling as much as 0.9% against the dollar on Friday before closing the day essentially unchanged.

Japan Earthquake: Yen closes worst week since 2022

Asset managers are turning bullish on the Japanese's yen, marking the first optimistic turn since may. This change in sentiment comes as the U.S. Federal reserve and the bank of Japan are anticipated to reverse their monetary policy paths, narrowing the gap between the two. Hedge funds are also showing less pessimism towards the yen, and Morgan Stanley predicts record Japan revenue in the coming year due to the central bank's supportive policies.

Money managers bet big on the Yen for first time since May

The Yen's three years of sharp drops are expected to come to an end in 2024 as the monetary policy gap starts to narrow. According to a bloomberg survey, analysts expect the yen to appreciate as the Bank of Japan is expected to end its decades-long negative interest rate regime.

Prolonged slump in the Yen expected to end next year

Yen to rally as Bank of Japan moves away from easy policy

Toyota Motor has reported a remarkable surge in its second-quarter profit, more than doubling its earnings while significantly revising its full-year outlook. The substantial boost in profits is attributed to a weaker yen currency, which has amplified the impact of robust global sales. &nbsp;

The world's top-selling automaker, unveiled a record operating profit of 1.44 trillion yen ($9.5 billion) in the quarter ending September, marking a 155.6 per cent increase from the previous year.&nbsp;

This surge in earnings is driven by increased sales across all global regions, encompassing the United States, Asia, and Toyota's home market. Over the first six months of this fiscal year, Toyota witnessed a surge in car sales when compared to the same period a year earlier, reaffirming its strong position in the global automotive market.&nbsp;

While Toyota has faced criticism for its perceived hesitance in embracing battery electric vehicles (EVs), the company embarked on a significant overhaul of its EV strategy in June. Toyota made a substantial commitment to enhance the driving range and reduce the costs of electric vehicles. &nbsp;

Market sentiment appears to be rallying around this new strategy, and Toyota is experiencing renewed interest in its line-up of gasoline-electric hybrids. This resurgence in hybrid interest coincides with a recent decline in enthusiasm for pure EVs, particularly in the United States, where consumers grapple with higher financing costs.&nbsp;

Hybrids continue to make up over 90 per cent of Toyota's electrified car sales. In the quarter ending September, hybrid sales experienced a substantial 41 per cent increase, totalling 888,000 vehicles. This surge in hybrid sales indicates the continued demand for these vehicles, which tend to be more cost-effective than some battery-powered EVs.&nbsp;

Despite Toyota's performance, analysts have highlighted a set of challenges that lie ahead, particularly in the Chinese market. In China, the rapid ascent of domestic EV manufacturers and the swift transition to battery-powered vehicles have posed difficulties for companies like Nissan Motor and Honda Motor. &nbsp;

According to Reuters, Chief Financial Officer Yoichi Miyazaki acknowledged that China is currently experiencing a "very severe price competition," particularly concerning battery EVs.&nbsp;

Additionally, Toyota faces competitive challenges in Southeast Asian markets such as Thailand, where a surge in Chinese investments, driven by the increasing demand for EVs, has led to intense competition. &nbsp;

Despite this, Toyota is determined to navigate these competitive landscapes as it aims to further its growth plans. The company recently announced an $8 billion boost in investment in a North Carolina plant focused on manufacturing batteries for hybrids, plug-in hybrids, and full-battery vehicles.&nbsp;

Toyota's second-quarter results have led to an upward revision of its full-year profit forecast. The company now expects a full-year profit of 4.5 trillion yen, up from the previous projection of 3 trillion yen. The favourable impact of foreign exchange rates, attributed to a weaker yen, plays a significant role in this revised profit outlook. &nbsp;

The company assumed an average rate of 141 yen per dollar for its calculations for the 2023-24 financial year, compared to the previous rate of 125 yen per dollar.&nbsp;

Additionally, Toyota has announced a 100 billion yen share buyback program, and its shares gained 4.7 per cent following the release of these results, contributing to a 2.4 per cent increase in Japan's benchmark Nikkei index.&nbsp;

(With inputs from Reuters)&nbsp;

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Toyota Motor has reported a remarkable surge in its second-quarter profit, more than doubling its earnings while significantly revising its full-year outlook. The substantial boost in profits is attributed to a weaker yen currency, which has amplified the impact of robust global sales.

Toyota Motor has reported a remarkable surge in its second-quarter profit, more than doubling its earnings while significantly revising its full-year outlook. The substantial boost in profits is attributed to a weaker yen currency, which has amplified the impact of robust global sales. The world's top-selling automaker, unveiled a record operating profit of 1.44 trillion yen ($9.5 billion) in the quarter ending September, marking a 155.6 per cent increase from the previous year. This surge in earnings is driven by increased sales across all global regions, encompassing the United States, Asia, and Toyota's home market. Over the first six months of this fiscal year, Toyota witnessed a surge in car sales when compared to the same period a year earlier, reaffirming its strong position in the global automotive market. While Toyota has faced criticism for its perceived hesitance in embracing battery electric vehicles (EVs), the company embarked on a significant overhaul of its EV strategy in June. Toyota made a substantial commitment to enhance the driving range and reduce the costs of electric vehicles. Market sentiment appears to be rallying around this new strategy, and Toyota is experiencing renewed interest in its line-up of gasoline-electric hybrids. This resurgence in hybrid interest coincides with a recent decline in enthusiasm for pure EVs, particularly in the United States, where consumers grapple with higher financing costs. Hybrids continue to make up over 90 per cent of Toyota's electrified car sales. In the quarter ending September, hybrid sales experienced a substantial 41 per cent increase, totalling 888,000 vehicles. This surge in hybrid sales indicates the continued demand for these vehicles, which tend to be more cost-effective than some battery-powered EVs. Despite Toyota's performance, analysts have highlighted a set of challenges that lie ahead, particularly in the Chinese market. In China, the rapid ascent of domestic EV manufacturers and the swift transition to battery-powered vehicles have posed difficulties for companies like Nissan Motor and Honda Motor. According to Reuters, Chief Financial Officer Yoichi Miyazaki acknowledged that China is currently experiencing a "very severe price competition," particularly concerning battery EVs. Additionally, Toyota faces competitive challenges in Southeast Asian markets such as Thailand, where a surge in Chinese investments, driven by the increasing demand for EVs, has led to intense competition. Despite this, Toyota is determined to navigate these competitive landscapes as it aims to further its growth plans. The company recently announced an $8 billion boost in investment in a North Carolina plant focused on manufacturing batteries for hybrids, plug-in hybrids, and full-battery vehicles. Toyota's second-quarter results have led to an upward revision of its full-year profit forecast. The company now expects a full-year profit of 4.5 trillion yen, up from the previous projection of 3 trillion yen. The favourable impact of foreign exchange rates, attributed to a weaker yen, plays a significant role in this revised profit outlook. The company assumed an average rate of 141 yen per dollar for its calculations for the 2023-24 financial year, compared to the previous rate of 125 yen per dollar. Additionally, Toyota has announced a 100 billion yen share buyback program, and its shares gained 4.7 per cent following the release of these results, contributing to a 2.4 per cent increase in Japan's benchmark Nikkei index. (With inputs from Reuters) WATCH WION LIVE HERE

Toyota achieves impressive Q2 profit amid weak yen and growing hybrid demand 

Takehiko Nakao, the former Asian Development Bank chief, has raised concerns about the Japanese yen's declining value, suggesting that Japan may need to intervene in the currency market again. Nakao also called for the Bank of Japan (BOJ) to reconsider its ultra-easy monetary policy.

In a recent interaction with Reuters, Nakao spoke about the risks associated with prolonged monetary easing, highlighting the need for a possible policy modification.

Reuters quoted Nakao as saying, "There may be views that the intervention is not imminent as the depreciation has not been so rapid compared to the last time when authorities intervened in September/October. But it's fully possible the authorities will conduct intervention in case the yen weakens further."

In the face of a weakening yen, Japan has spent over 9 trillion yen last year to stabilise the currency. The yen, currently trading around 147.77 against the dollar, has been a cause for concern, as a weaker yen can negatively impact Japan's exports and create economic instability.

Takehiko Nakao, who worked as the top currency official from August 2011 to March 2013, supervised a significant intervention in 2011 to control the yen’s strength in response to the U.S. Federal Reserve's quantitative easing. However, now that the yen is considerably weaker, Japan faces different economic challenges, such as rising import prices and increased living costs.

Nakao's concerns are echoed by investors who view prolonged monetary easing as distorting markets and hurting bank profits. A weaker yen has emerged as a result of Japan's contrast with the global trend of monetary control. Other major central banks, such as the Federal Reserve, have hiked interest rates to fight off inflation while the BOJ continues to undertake potent monetary stimulus measures.

As the BOJ concludes its two-day meeting this week, it is widely expected to maintain its yield curve control (YCC) targets at a negative 0.1 per cent for short-term interest rates and 0 per cent for the 10-year bond yield. However, Nakao, who is in talks with present policymakers, argues for a change in direction.

"In the face of ongoing headline inflation and an excessively weak yen, the BOJ may have no choice but to proceed with monetary policy normalisation, including an exit from negative rate policy and yield curve control, so as not to fall behind the curve," Nakao&nbsp; told Reuters. "Given that JGB yields remain stable and inflation is on the rise, now is the chance to tweak yield curve control."

(With inputs from Reuters)

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Takehiko Nakao, the former Asian Development Bank chief, has raised concerns about the Japanese yen's declining value, suggesting that Japan may need to intervene in the currency market again.

Takehiko Nakao, the former Asian Development Bank chief, has raised concerns about the Japanese yen's declining value, suggesting that Japan may need to intervene in the currency market again. Nakao also called for the Bank of Japan (BOJ) to reconsider its ultra-easy monetary policy. In a recent interaction with Reuters, Nakao spoke about the risks associated with prolonged monetary easing, highlighting the need for a possible policy modification. Reuters quoted Nakao as saying, "There may be views that the intervention is not imminent as the depreciation has not been so rapid compared to the last time when authorities intervened in September/October. But it's fully possible the authorities will conduct intervention in case the yen weakens further." In the face of a weakening yen, Japan has spent over 9 trillion yen last year to stabilise the currency. The yen, currently trading around 147.77 against the dollar, has been a cause for concern, as a weaker yen can negatively impact Japan's exports and create economic instability. Takehiko Nakao, who worked as the top currency official from August 2011 to March 2013, supervised a significant intervention in 2011 to control the yen’s strength in response to the U.S. Federal Reserve's quantitative easing. However, now that the yen is considerably weaker, Japan faces different economic challenges, such as rising import prices and increased living costs. Nakao's concerns are echoed by investors who view prolonged monetary easing as distorting markets and hurting bank profits. A weaker yen has emerged as a result of Japan's contrast with the global trend of monetary control. Other major central banks, such as the Federal Reserve, have hiked interest rates to fight off inflation while the BOJ continues to undertake potent monetary stimulus measures. As the BOJ concludes its two-day meeting this week, it is widely expected to maintain its yield curve control (YCC) targets at a negative 0.1 per cent for short-term interest rates and 0 per cent for the 10-year bond yield. However, Nakao, who is in talks with present policymakers, argues for a change in direction. "In the face of ongoing headline inflation and an excessively weak yen, the BOJ may have no choice but to proceed with monetary policy normalisation, including an exit from negative rate policy and yield curve control, so as not to fall behind the curve," Nakao told Reuters. "Given that JGB yields remain stable and inflation is on the rise, now is the chance to tweak yield curve control." (With inputs from Reuters) WATCH WION LIVE HERE

Japan contemplates yen intervention and policy shift as economic concerns mount

Panasonic reported a 42% surge in first-quarter operating profit, buoyed by a weaker Yen and stronger sales in its automotive and energy segments. Panasonic’s operating profit came to $637 million in the three months to end-June, almost exactly in line with analyst forecasts. Overall, first-quarter operating profit of the battery unit came to $206 million, jumping more than 80% from the same period the previous year.

Panasonic’s Q1 profit surges 42% | World Business Watch

Japan's central bank left its ultra-easy monetary policy unchanged, a move that sent the yen plunging, despite heavy speculation it could again tweak a key lever.

Bank of Japan sticks to easy policy, defies market speculation

The Bank of Japan in its policy statement on Tuesday shocked markets by expanding its target band for interest rates, causing the yen to rise, bond yields to go up and stock prices to fall.&nbsp;

In its statement, the central bank said it will now allow yields on 10-year government bonds to move up or down on the basis of 50 basis points instead of 25 basis points around its 0 per cent objective, Nikkei Asia reported.&nbsp;

The BoJ Governor Haruhiko Kuroda told reporters, "This is neither a tightening nor a step toward an exit. This is a tweak to the monetary policy operation." He added that the changes are done responding to the changes in the market. "We did this to support the economy and will explain it to market players as much as necessary."

<a href="https://www.wionews.com/business-economy/world-bank-slashes-chinas-growth-forecast-from-43-per-cent-to-27-per-cent-in-2022-544824">Also read |&nbsp;World Bank slashes China’s growth forecast from 4.3 per cent to 2.7 per cent for 2022</a>

Bank's board decided to keep its main monetary policies unchanged.

Amid the tweaking of monetary policies, the yen soared to a four-month high against the dollar. The policy also comes after a decline in the US interest rates and market policies.&nbsp;

The move sent the yen to 132 per dollar making its strongest level since August.&nbsp;

The bank added that the policies were modified in order to improve the market functioning in the Asian country, encouraging a smoother yield cure formation.&nbsp;

The yield curve allows the bank to purchase Japanese government bonds with yields of zero and shirt term rates of minus 0.1 per cent.&nbsp;

<a href="https://www.wionews.com/business-economy/japan-government-spent-more-than-40-billion-to-bolster-the-yen-in-october-530006">Also read |&nbsp;Japanese government spent more than $40 billion to bolster the yen in October</a>

The move also caused the benchmark Nikkei 225 average to fall y 2.5 per cent, raised the yen from a range of 137 to about 132 against the dollar, and spiked the yield in the 10-year JCB to 0.46 per cent.&nbsp;

Over the past several months, the pressure on the central bank to tighten the policy has decreased as the yield on the 10-year US Treasury has declined from 4.2 per cent to 3.4 per cent.&nbsp;

Japan's inflation is at a 40-year high with consumer prices increasing by 3.6 per cent in October which is far beyond BoJ's 2 per cent target.

(With inputs from agencies)

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The Bank of Japan in its policy statement on Tuesday shocked markets by expanding its target band for interest rates, causing the yen to rise, bond yields to go up and stock prices to fall.

The Bank of Japan in its policy statement on Tuesday shocked markets by expanding its target band for interest rates, causing the yen to rise, bond yields to go up and stock prices to fall. In its statement, the central bank said it will now allow yields on 10-year government bonds to move up or down on the basis of 50 basis points instead of 25 basis points around its 0 per cent objective, Nikkei Asia reported. The BoJ Governor Haruhiko Kuroda told reporters, "This is neither a tightening nor a step toward an exit. This is a tweak to the monetary policy operation." He added that the changes are done responding to the changes in the market. "We did this to support the economy and will explain it to market players as much as necessary." Also read | World Bank slashes China’s growth forecast from 4.3 per cent to 2.7 per cent for 2022 Bank's board decided to keep its main monetary policies unchanged. Amid the tweaking of monetary policies, the yen soared to a four-month high against the dollar. The policy also comes after a decline in the US interest rates and market policies. The move sent the yen to 132 per dollar making its strongest level since August. The bank added that the policies were modified in order to improve the market functioning in the Asian country, encouraging a smoother yield cure formation. The yield curve allows the bank to purchase Japanese government bonds with yields of zero and shirt term rates of minus 0.1 per cent. Also read | Japanese government spent more than $40 billion to bolster the yen in October The move also caused the benchmark Nikkei 225 average to fall y 2.5 per cent, raised the yen from a range of 137 to about 132 against the dollar, and spiked the yield in the 10-year JCB to 0.46 per cent. Over the past several months, the pressure on the central bank to tighten the policy has decreased as the yield on the 10-year US Treasury has declined from 4.2 per cent to 3.4 per cent. Japan's inflation is at a 40-year high with consumer prices increasing by 3.6 per cent in October which is far beyond BoJ's 2 per cent target. (With inputs from agencies) WATCH WION LIVE HERE

Japan's central bank shocks markets with yield policy change, yen strengthens  

Japan and a weak Yen has pushed up cost of imported commodities in the country, they were already surging due to global supply constraints now. This has led to the jump in Japan's core consumer inflation that has accelerated to 40-year high.

World Business Watch: Japan's inflation hits 40-year high; commodities price surge

The Japanese government spent at least $42.8 billion (a record 6.35 trillion yen) in the month of October to bolster the country’s currency, the yen, said a report released by the country’s Ministry of Finance, on Monday. This also comes after the government spent 2.8 trillion yen ($20 billion) in September amid the currency’s decline for almost 32-year-lows.&nbsp;

Reports suggest that the Japanese government started buying the yen last month, a first since 1998, to counter the sharp decline of the currency against the dollar. The finance ministry report disclosed the data for the period between September 29 to October 27, however, does not indicate the number of times the government intervened.&nbsp;

Earlier this year, in September, Japanese Finance Minister Shunichi Suzuki had talked about the government’s move to buy the yen, a first in over two decades, while repeatedly implying that he would not tolerate any speculative moves in the yen.&nbsp;

ALSO READ:&nbsp;<a href="https://www.wionews.com/world/japan-pm-announces-260bn-stimulus-package-to-combat-rising-inflation-529139">Japan PM announces $260bn stimulus package to combat rising inflation</a>

However, reports suggest that despite these actions and warnings currency has continued to hover near the 150 yen level and have attributed this to the increasing gap between the Bank of Japan, the country’s central bank and their ultra-loose monetary policy and tightening by most other large central banks across the world.&nbsp;

This comes amid global concern about the strength of the dollar this year with the US Federal Reserve’s push to increase interest rates to combat inflation in the country attracting larger investments in dollar-denominated assets while the BoJ is reportedly keeping interest rates near zero. On October 21, the yen hit a 32-year intraday low of 151.93 yen to the dollar, said&nbsp;reports.

Meanwhile, the country’s top currency official, Masato Kanda, suggested that the government with its almost $1.3 trillion in foreign reserves has a “limitless” amount of funds to conduct interventions, said a report by Financial Times. On the other hand, analysts have questioned the effectiveness of such unilateral actions while others have expressed caution about this move increasing market volatility.&nbsp;

ALSO READ:&nbsp;<a href="https://www.wionews.com/world/japan-after-fall-in-tax-revenues-government-launches-competition-to-encourage-alcohol-consumption-507929">Please drink more: As tax revenues fall, Japan launches competition to encourage alcohol consumption</a>

As of Monday evening in Tokyo, the yen was nearly 148.57 per dollar. As interest rates continue to widen between the US and Japan the yen is expected to stay under downward pressure against the dollar. However, a report by Bloomberg citing economist Atsushi Takeda at Itochu Research Institute speculates that the US Federal Reserve may be approaching its peak on rate hikes which should ease some pressure on the yen.&nbsp;

(With inputs from agencies)&nbsp; 
&nbsp;

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The Japanese government spent at least $42.8 billion (a record 6.35 trillion yen) in the month of October to bolster the country’s currency, the yen, said a report released by the country’s Ministry of Finance, on Monday.

The Japanese government spent at least $42.8 billion (a record 6.35 trillion yen) in the month of October to bolster the country’s currency, the yen, said a report released by the country’s Ministry of Finance, on Monday. This also comes after the government spent 2.8 trillion yen ($20 billion) in September amid the currency’s decline for almost 32-year-lows. Reports suggest that the Japanese government started buying the yen last month, a first since 1998, to counter the sharp decline of the currency against the dollar. The finance ministry report disclosed the data for the period between September 29 to October 27, however, does not indicate the number of times the government intervened. Earlier this year, in September, Japanese Finance Minister Shunichi Suzuki had talked about the government’s move to buy the yen, a first in over two decades, while repeatedly implying that he would not tolerate any speculative moves in the yen. ALSO READ: Japan PM announces $260bn stimulus package to combat rising inflation However, reports suggest that despite these actions and warnings currency has continued to hover near the 150 yen level and have attributed this to the increasing gap between the Bank of Japan, the country’s central bank and their ultra-loose monetary policy and tightening by most other large central banks across the world. This comes amid global concern about the strength of the dollar this year with the US Federal Reserve’s push to increase interest rates to combat inflation in the country attracting larger investments in dollar-denominated assets while the BoJ is reportedly keeping interest rates near zero. On October 21, the yen hit a 32-year intraday low of 151.93 yen to the dollar, said reports. Meanwhile, the country’s top currency official, Masato Kanda, suggested that the government with its almost $1.3 trillion in foreign reserves has a “limitless” amount of funds to conduct interventions, said a report by Financial Times. On the other hand, analysts have questioned the effectiveness of such unilateral actions while others have expressed caution about this move increasing market volatility. ALSO READ: Please drink more: As tax revenues fall, Japan launches competition to encourage alcohol consumption As of Monday evening in Tokyo, the yen was nearly 148.57 per dollar. As interest rates continue to widen between the US and Japan the yen is expected to stay under downward pressure against the dollar. However, a report by Bloomberg citing economist Atsushi Takeda at Itochu Research Institute speculates that the US Federal Reserve may be approaching its peak on rate hikes which should ease some pressure on the yen. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Japanese government spent more than $40 billion to bolster the yen in October

Many financial institutions have predicted that the world is headed for another recession.

As rising inflation leads to a hike in interest rates, companies across the world have announced a freeze in hiring and planning to downsize their staff.

On Tuesday, the United Nations warned of an impending global slowdown that may likely be worse than the financial crisis in 2008 and the COVID-19 shock in 2020.

In its Trade and Development Report 2022, the UN Conference on Trade and Development (UNCTAD) warned that the world is “on the edge of a recession” and developing nations like those in Asia could bear the brunt of it.

It said that monetary and fiscal policies in advanced economies — including continued interest rate hikes — could push the world towards a global recession and stagnation.

Economists have given a myriad of reasons for the current recession predictions. Here are some of the five key indicators that suggest a lull in the economy worldwide.

US dollar

The US dollar has been surging for the past few months. It’s now the strongest it has been in two decades, and experts believe the value will grow even stronger in the coming days.

But this surge in the value of the power of the greenback is agitating the economies and markets worldwide, and creating winners and losers.

Though a strong dollar bodes well for the Americans, the consequences are faced by other countries, especially the developing ones.

The rise of US dollar has led to a decline in the value of UK pound, the euro, China’s yuan, Japan’s yen, India’s rupee and many others.

As a result, it makes it more expensive for these nations to import essential items like food and fuel.

In response, central banks in a bid to fight surging inflation and to shore up the value of their own currencies end up raising rates higher

US economy faltering

The key driver of the US economy is shopping. They live by the motto ‘shop till you drop’.

But recently, their spending amount has taken a massive hit. And the reason is linked to the US Fed rate hike.

The central bank has raised interest rates at a historic pace, making mortgage rates to the highest level in decades, and clipping the wings of the business. &nbsp;

Though the Fed hikes rates to taper down inflation, it gives a short-term shock to consumers whose borrowing power decreases for a brief period.

Corporate America tightens purse strings

Though the business prospered in 2020 despite the Covid shocks thanks to the American spenders, it has not been smooth sailing for the past few months, especially in the wake of the Russian invasion of Ukraine, reports CNN.

In mid-September, FedEx, which operates in more than 200 countries and whose performance signals the strength of the market, revised its outlook.

It warned that demand was softening, and earnings were likely to take a hit by more than 40 per cent.

Moreover, last week, Apple cut back on its production of the iPhone 14 after assessing subdued demand. &nbsp;The move took a toll on its shares as it fell by 4 per cent.

Bear makes an entry into Wall Street

According to CNN, Wall Street is now on track for its worst year since 2008.

After inflation set in, the Fed raised interest rates giving a brutal blow to the stock market.

The S&amp;P 500, the broadest measure of Wall Street —&nbsp;and the index responsible for the bulk of Americans’ 401(k)s — is down nearly 24 per cent for the year. Moreover, all three major US indexes are&nbsp;in bear markets— down at least 20 per cent from their most recent highs.

A similar situation has arisen in Europe, where the bond yields are spiking as central banks follow the Fed’s lead in raising rates to shore up their own currencies.

War and inflation

The Russia-Ukraine war and the resultant inflation spike have caused the most harm to the people of the United Kingdom&nbsp;

The UK has been struggling with surging prices since COVID-19, followed by the trade disruptions created by Russia’s invasion of Ukraine.

After the West imposed sanctions on Russian gas, energy prices have soared and supplies have dwindled.

The Britishers, who are grappling with the cost-of-living crisis with 10 per cent inflation, are raising concerns over higher borrowing costs that make millions of homebuyers’ monthly mortgage payments go up by hundreds or even thousands of pounds, reports CNN.

When would recession hit?

While there is a general consensus on the impending global recession, many analysts predict it to happen sometime in 2023. But, no one has predicted how severe it will be or how long it will last.

(With inputs from agencies)

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Many financial institutions have predicted that the world is headed for another recession. As rising inflation leads to a hike in interest rates, companies across the world have announced a freeze in hiring and planning to downsize their staff.

Many financial institutions have predicted that the world is headed for another recession. As rising inflation leads to a hike in interest rates, companies across the world have announced a freeze in hiring and planning to downsize their staff. On Tuesday, the United Nations warned of an impending global slowdown that may likely be worse than the financial crisis in 2008 and the COVID-19 shock in 2020. In its Trade and Development Report 2022, the UN Conference on Trade and Development (UNCTAD) warned that the world is “on the edge of a recession” and developing nations like those in Asia could bear the brunt of it. It said that monetary and fiscal policies in advanced economies — including continued interest rate hikes — could push the world towards a global recession and stagnation. Economists have given a myriad of reasons for the current recession predictions. Here are some of the five key indicators that suggest a lull in the economy worldwide. US dollar The US dollar has been surging for the past few months. It’s now the strongest it has been in two decades, and experts believe the value will grow even stronger in the coming days. But this surge in the value of the power of the greenback is agitating the economies and markets worldwide, and creating winners and losers. Though a strong dollar bodes well for the Americans, the consequences are faced by other countries, especially the developing ones. The rise of US dollar has led to a decline in the value of UK pound, the euro, China’s yuan, Japan’s yen, India’s rupee and many others. As a result, it makes it more expensive for these nations to import essential items like food and fuel. In response, central banks in a bid to fight surging inflation and to shore up the value of their own currencies end up raising rates higher US economy faltering The key driver of the US economy is shopping. They live by the motto ‘shop till you drop’. But recently, their spending amount has taken a massive hit. And the reason is linked to the US Fed rate hike. The central bank has raised interest rates at a historic pace, making mortgage rates to the highest level in decades, and clipping the wings of the business. Though the Fed hikes rates to taper down inflation, it gives a short-term shock to consumers whose borrowing power decreases for a brief period. Corporate America tightens purse strings Though the business prospered in 2020 despite the Covid shocks thanks to the American spenders, it has not been smooth sailing for the past few months, especially in the wake of the Russian invasion of Ukraine, reports CNN. In mid-September, FedEx, which operates in more than 200 countries and whose performance signals the strength of the market, revised its outlook. It warned that demand was softening, and earnings were likely to take a hit by more than 40 per cent. Moreover, last week, Apple cut back on its production of the iPhone 14 after assessing subdued demand. The move took a toll on its shares as it fell by 4 per cent. Bear makes an entry into Wall Street According to CNN, Wall Street is now on track for its worst year since 2008. After inflation set in, the Fed raised interest rates giving a brutal blow to the stock market. The S&P 500, the broadest measure of Wall Street — and the index responsible for the bulk of Americans’ 401(k)s — is down nearly 24 per cent for the year. Moreover, all three major US indexes are in bear markets— down at least 20 per cent from their most recent highs. A similar situation has arisen in Europe, where the bond yields are spiking as central banks follow the Fed’s lead in raising rates to shore up their own currencies. War and inflation The Russia-Ukraine war and the resultant inflation spike have caused the most harm to the people of the United Kingdom The UK has been struggling with surging prices since COVID-19, followed by the trade disruptions created by Russia’s invasion of Ukraine. After the West imposed sanctions on Russian gas, energy prices have soared and supplies have dwindled. The Britishers, who are grappling with the cost-of-living crisis with 10 per cent inflation, are raising concerns over higher borrowing costs that make millions of homebuyers’ monthly mortgage payments go up by hundreds or even thousands of pounds, reports CNN. When would recession hit? While there is a general consensus on the impending global recession, many analysts predict it to happen sometime in 2023. But, no one has predicted how severe it will be or how long it will last. (With inputs from agencies) WATCH WION LIVE HERE:

Five signs why global economy is headed for recession

Amid fears of a global slowdown compounded by investors' risk aversion to equity markets, Rupee tumbled to a new low on Monday. Reportedly, the Indian currency fell 38 paise to hit an all-time low of 81.

Amid fears of a global slowdown compounded by investors' risk aversion to equity markets, Rupee tumbled to a new low on Monday. Reportedly, the Indian currency fell 38 paise to hit an all-time low of 81.47 against the US greenback before closing the day at 81.6225 per dollar. Notably, the rupee had reached a low of 81.22 on Friday, prompting the Reserve Bank of India (RBI) to quickly sell dollars. Consequently, the rupee had a little breather. The Indian rupee taking a beating comes in the backdrop of a hawkish US Fed hiking interest rates by 75 basis points to 3-3.25 per cent last week. This was the third straight time that the Fed had announced a hike, primarily meant to arrest the sky-inflation rates in the country. However, it instantly lead to a mismatch in the global economies. The two major currencies in Asia, the yen and the yuan have tumbled as well due to investors fearing that the Asian market may experience crisis-level stress once again. Read more: Indian rupee hits new low, slips below 81-mark against US dollar for the first time ever It is pertinent to note that most major currencies across the globe have been struggling and depreciating against the US dollar. Speaking on the currency fluctuation, Union Finance Minister Nirmala Sitharaman last week stated that Indian Rupee 'held up very well' against the US dollar when compared to other currencies. "If any one currency which has held its own and did not get into fluctuation or volatility as much as other currencies, it is the Indian rupee. We have held back very well," said Sitharaman. The RBI Monetary Policy Committee (MPC) meeting is scheduled to be held later this week. The investors are keeping a close eye on the developments that come from the meeting. However, the sentiment leading to the meeting is rather downbeat amongst the investors. Experts believe that the rupee will tumble as risk-off sentiment takes the dollar index to 113.70 and sterling to 1.0557 against the dollar. Read more: Pound hits all-time low against dollar as Liz Truss' tax cuts come under pressure (With inputs from agencies) WATCH WION LIVE HERE:

Rupee tumbles to a new record low. Closes at 81.62 per dollar

Japan's core consumer inflation quickened to 2.8% in August to hit the fastest annual pace in nearly eight years. This is as price pressure from raw materials and yen weakness broadened.

World Business Watch: Japan's August consumer inflation hits near 8-year high

Japan's core machinery orders extended gains in July, raising hopes business growth spending may offset near-term headwinds from a global economic slowdown and a weaker yen.

World Business Watch: Japan's machinery orders post surprise gains in July

The yen plunged to a 24-year low versus the dollar on Thursday as markets battled inflation fears and another significant Chinese city went into lockdown. The world's stock indexes mainly declined during this day.&nbsp;

Equities in Frankfurt, London, and Paris all experienced declines of 1.5% to 2% as worries about further increases in borrowing costs were stoked by the eurozone's record-high inflation rate and the region's soaring winter energy prices as a result of Russia's conflict with Ukraine.&nbsp;

The European Central Bank raised interest rates for the first time in ten years in July, and it will reveal its most recent monetary policy decision on Thursday.

A continued focus on US monetary policy was also anticipated. The August jobs report, which will be released on Friday, is anticipated to bolster the Federal Reserve's resolve to raise interest rates.&nbsp;

Analysts predict that the US economy will create a healthy 300,000 new jobs in August and that the unemployment rate will stay at 3.5%.&nbsp;

According to Art Hogan, chief market strategist at B Riley Wealth Management, "we're in this world where we're afraid that good news is going to embolden the Fed to be even more aggressive."&nbsp;

Also Read:&nbsp;<a href="https://www.wionews.com/world/us-russia-nuclear-weapons-inspection-must-as-per-new-start-treaty-says-us-512208">US-Russia nuclear weapons inspection must as per New START Treaty, says US</a>

Following a gloomy start, US markets surged later in the day, helping to boost the Dow and S&amp;P 500 and end a four-day losing run.

On Thursday, the yen hit a record 24-year low versus the dollar as Japan maintained its long-standing monetary easing measures in opposition to the Fed's tightening.&nbsp;

In lunchtime trades in Europe, one dollar traded above 140 yen for the first time since 1998 as the dollar appreciated versus other currencies.&nbsp;

Thursday saw more declines in Asian stocks as investors continued to assess China's superpower economy's declining factory activity.

(with inputs from agencies)

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The yen plunged to a 24-year low versus the dollar on Thursday as markets battled inflation fears and another significant Chinese city went into lockdown. The world's stock indexes mainly declined during this day.

The yen plunged to a 24-year low versus the dollar on Thursday as markets battled inflation fears and another significant Chinese city went into lockdown. The world's stock indexes mainly declined during this day. Equities in Frankfurt, London, and Paris all experienced declines of 1.5% to 2% as worries about further increases in borrowing costs were stoked by the eurozone's record-high inflation rate and the region's soaring winter energy prices as a result of Russia's conflict with Ukraine. The European Central Bank raised interest rates for the first time in ten years in July, and it will reveal its most recent monetary policy decision on Thursday. A continued focus on US monetary policy was also anticipated. The August jobs report, which will be released on Friday, is anticipated to bolster the Federal Reserve's resolve to raise interest rates. Analysts predict that the US economy will create a healthy 300,000 new jobs in August and that the unemployment rate will stay at 3.5%. According to Art Hogan, chief market strategist at B Riley Wealth Management, "we're in this world where we're afraid that good news is going to embolden the Fed to be even more aggressive." Also Read: US-Russia nuclear weapons inspection must as per New START Treaty, says US Following a gloomy start, US markets surged later in the day, helping to boost the Dow and S&P 500 and end a four-day losing run. On Thursday, the yen hit a record 24-year low versus the dollar as Japan maintained its long-standing monetary easing measures in opposition to the Fed's tightening. In lunchtime trades in Europe, one dollar traded above 140 yen for the first time since 1998 as the dollar appreciated versus other currencies. Thursday saw more declines in Asian stocks as investors continued to assess China's superpower economy's declining factory activity. (with inputs from agencies)

Japanese Yen tumbles to 24-year low against dollar as market grapples with inflation

The Bank of Japan (BoJ) on Friday stuck to its monetary easing policy even as other central banks raise interest rates to tame inflation, but said it would "pay due attention" to forex markets after the yen hit a 24-year low.

The bank will hold rates at minus 0.1 per cent and continue buying unlimited government bonds to maintain a low cap on long-term yields part of a decade-old plan to boost the world's third-largest economy.

The decision, announced after a two-day policy meeting, bucks a global monetary tightening trend aimed at battling sky-high fuel and food prices caused by the Ukraine war and supply chain snarls.

Also read |&nbsp;<a href="https://www.wionews.com/world/swiss-national-bank-ready-for-more-rate-hikes-after-shock-move-488720">Swiss National Bank ready for more rate hikes after shock move</a>

Rate hikes have been led by the US Federal Reserve, which this week announced its most aggressive increase in nearly 30 years and signalled more were in the pipeline.

The European Central Bank has said it plans to start a series of increases next month, while the Bank of England announced a fifth straight increase on Thursday and Switzerland surprised markets with its own rate hike, the first since 2007.

The widening chasm between Japanese and US monetary policy this week pushed the yen to its lowest level against the dollar since 1998, a cause for increasing concern that even the central bank made reference to in its policy statement.

"It is necessary to pay due attention to developments in financial and foreign exchange markets and their impact on Japan's economic activity and prices," the BoJ said, in an unusual reference to forex movements.

After the announcement, one dollar bought 134.63 yen, up from 133.41 yen earlier in the day.

'Targeting price stability'

Bank governor Haruhiko Kuroda told reporters that the yen's rapid depreciation is "undesirable for the economy, because it has increased uncertainty about the future and made it difficult for companies to draft business plans".

However, he added that "central banks do not target exchange rates. We run monetary policy targeting price stability".

Watch |&nbsp;Global market meltdown: Series of hikes by central banks

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Kuroda said the BoJ was not considering expanding the trading range of 10-year bonds, a move analysts say could help support the yen.

A weaker currency helps Japanese exporters as it inflates repatriated profits, noted Yoshikiyo Shimamine, executive chief economist of Dai-ichi Life Research Institute.

For the BoJ, it may be that "these benefits overwhelm the negative aspects of a cheaper yen high prices for imported goods, which causes people to suffer without sufficient pay rises," he told AFP.

The bank's ultra-loose monetary policy aims to achieve two-percent inflation, a target that has been stubbornly out of reach during years of price stagnation.

In April, core consumer prices hit the target for the first time since 2015, but the BoJ has cautioned that it sees recent rising prices as a temporary and volatile trend.

Also read |&nbsp;<a href="https://www.wionews.com/world/japanese-airline-ditches-pro-russia-logo-letter-z-associated-with-russias-invasion-of-ukraine-488744">Japanese airline ditches letter 'Z' logo, which may seem pro-Russia</a>

Inflation has been rising for months in the United States and elsewhere as buoyant demand for cars and other goods clashes with supply problems caused by COVID-19 lockdowns.

The problem became dramatically worse after Russia invaded Ukraine in February and Western nations imposed steep sanctions on Moscow, sending food and fuel prices soaring, a particular problem in resource-poor Japan.

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The Bank of Japan (BoJ) on Friday stuck to its monetary easing policy even as other central banks raise interest rates to tame inflation, but said it would "pay due attention" to forex markets after the yen hit a 24-year low.

The Bank of Japan (BoJ) on Friday stuck to its monetary easing policy even as other central banks raise interest rates to tame inflation, but said it would "pay due attention" to forex markets after the yen hit a 24-year low. The bank will hold rates at minus 0.1 per cent and continue buying unlimited government bonds to maintain a low cap on long-term yields part of a decade-old plan to boost the world's third-largest economy. The decision, announced after a two-day policy meeting, bucks a global monetary tightening trend aimed at battling sky-high fuel and food prices caused by the Ukraine war and supply chain snarls. Also read | Swiss National Bank ready for more rate hikes after shock move Rate hikes have been led by the US Federal Reserve, which this week announced its most aggressive increase in nearly 30 years and signalled more were in the pipeline. The European Central Bank has said it plans to start a series of increases next month, while the Bank of England announced a fifth straight increase on Thursday and Switzerland surprised markets with its own rate hike, the first since 2007. The widening chasm between Japanese and US monetary policy this week pushed the yen to its lowest level against the dollar since 1998, a cause for increasing concern that even the central bank made reference to in its policy statement. "It is necessary to pay due attention to developments in financial and foreign exchange markets and their impact on Japan's economic activity and prices," the BoJ said, in an unusual reference to forex movements. After the announcement, one dollar bought 134.63 yen, up from 133.41 yen earlier in the day. 'Targeting price stability' Bank governor Haruhiko Kuroda told reporters that the yen's rapid depreciation is "undesirable for the economy, because it has increased uncertainty about the future and made it difficult for companies to draft business plans". However, he added that "central banks do not target exchange rates. We run monetary policy targeting price stability". Watch | Global market meltdown: Series of hikes by central banks Kuroda said the BoJ was not considering expanding the trading range of 10-year bonds, a move analysts say could help support the yen. A weaker currency helps Japanese exporters as it inflates repatriated profits, noted Yoshikiyo Shimamine, executive chief economist of Dai-ichi Life Research Institute. For the BoJ, it may be that "these benefits overwhelm the negative aspects of a cheaper yen high prices for imported goods, which causes people to suffer without sufficient pay rises," he told AFP. The bank's ultra-loose monetary policy aims to achieve two-percent inflation, a target that has been stubbornly out of reach during years of price stagnation. In April, core consumer prices hit the target for the first time since 2015, but the BoJ has cautioned that it sees recent rising prices as a temporary and volatile trend. Also read | Japanese airline ditches letter 'Z' logo, which may seem pro-Russia Inflation has been rising for months in the United States and elsewhere as buoyant demand for cars and other goods clashes with supply problems caused by COVID-19 lockdowns. The problem became dramatically worse after Russia invaded Ukraine in February and Western nations imposed steep sanctions on Moscow, sending food and fuel prices soaring, a particular problem in resource-poor Japan. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Bank of Japan keeps monetary easing despite global rate hikes

The yen plunged to its lowest level against the dollar since 1998 on Monday as sky-high US inflation fuels a widening monetary policy gap between Japan and the world's largest economy.

Japan's currency has been weakening for months, accelerated by the US Federal Reserve's aggressive monetary tightening to tackle soaring inflation caused by the war in Ukraine and other factors.

But unlike the Fed, the Bank of Japan has said it will stick with its long-standing monetary easing programme which it hopes will lead to stable growth.

The increasingly polar policies have strengthened the greenback, and on Monday one dollar bought 135.19 yen.

Also read |&nbsp;<a href="https://www.wionews.com/world/why-japan-prefers-higher-inflation-481910">Why Japan prefers higher inflation</a>

It's a level not seen since October 1998 during the Asian currency crisis, and marks a dramatic drop from January rates of around 115 yen per dollar.

"The&nbsp;ongoing backdrop to the yen's fall is the growing gap between long-term interest rates in Japan and the United States," Takahide Kinouchi, executive economist at Nomura Research Institute, said in a recent commentary.

And as higher oil prices fuel US inflation, "expectations are growing stronger that aggressive US monetary tightening will continue for the time being, causing US yields to rise further."

US consumer prices for May hit a new four-decade high, rising 8.6 per cent and topping what economists thought was the peak in March.

Benefits for tourism, exporters

In Japan however, inflation has only just hit the central bank's long-term target of two percent.

And while the figure represents a seven-year high, the BoJ sees current inflationary pressures as temporary, and believes its monetary policy is necessary to produce more long-lasting growth.

As the war in Ukraine pressures global fuel and food prices, household brands from Uniqlo to 7-Eleven have anounced price hikes, with budget sushi chain Sushiro causing shock when it said it would no longer offer plates for 100 yen ($0.75).

But BoJ governor Haruhiko Kuroda said last week that "monetary tightening is not at all a suitable measure" for Japan, whose economy is still recovering from the pandemic, according to Kyodo News.

Watch |&nbsp;Asia stocks hit 3-week top, dollar near 5 weeks low

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He also pointed to the benefits of a weaker yen for&nbsp;Japanese&nbsp;exporters, whose overseas profits are inflated when they are repatriated and have seen their stock prices rise in recent months.

The weaker yen could also be a boon for the tourism sector, with Japan cautiously reopening to foreign visitors now allowed in on group tours.

"The weak yen helps to support Japan's export sector directly, and a weaker exchange rate also contributes to looser monetary conditions domestically," said Alvin Tan, head of Asia forex strategy at RBC Capital Markets in Singapore.

"These will help drive the economic recovery further," he told AFP.

Although "higher import prices will negatively affect consumers" and the weaker yen will contribute to inflation, particularly given Japan's reliance on energy imports, this could also be "seen as a positive", he said.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/dollar-gains-as-us-stocks-fall-ecb-decision-on-tap-486375">Dollar gains as US stocks fall, ECB decision on tap</a>

"It could help to deepen more persistent inflation expectations in a country that has suffered under deflation for so many years."

The yen's trajectory may depend on how the US Fed acts in its September meeting, with worse-than-expected inflation figures for May raising expectations of further rate hikes.

But "there is still a lot of time left until then," said Kinouchi, and other factors may also be at play including energy prices rising further after a European Union ban on most Russian oil imports.

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The yen plunged to its lowest level against the dollar since 1998 on Monday as sky-high US inflation fuels a widening monetary policy gap between Japan and the world's largest economy.

The yen plunged to its lowest level against the dollar since 1998 on Monday as sky-high US inflation fuels a widening monetary policy gap between Japan and the world's largest economy. Japan's currency has been weakening for months, accelerated by the US Federal Reserve's aggressive monetary tightening to tackle soaring inflation caused by the war in Ukraine and other factors. But unlike the Fed, the Bank of Japan has said it will stick with its long-standing monetary easing programme which it hopes will lead to stable growth. The increasingly polar policies have strengthened the greenback, and on Monday one dollar bought 135.19 yen. Also read | Why Japan prefers higher inflation It's a level not seen since October 1998 during the Asian currency crisis, and marks a dramatic drop from January rates of around 115 yen per dollar. "The ongoing backdrop to the yen's fall is the growing gap between long-term interest rates in Japan and the United States," Takahide Kinouchi, executive economist at Nomura Research Institute, said in a recent commentary. And as higher oil prices fuel US inflation, "expectations are growing stronger that aggressive US monetary tightening will continue for the time being, causing US yields to rise further." US consumer prices for May hit a new four-decade high, rising 8.6 per cent and topping what economists thought was the peak in March. Benefits for tourism, exporters In Japan however, inflation has only just hit the central bank's long-term target of two percent. And while the figure represents a seven-year high, the BoJ sees current inflationary pressures as temporary, and believes its monetary policy is necessary to produce more long-lasting growth. As the war in Ukraine pressures global fuel and food prices, household brands from Uniqlo to 7-Eleven have anounced price hikes, with budget sushi chain Sushiro causing shock when it said it would no longer offer plates for 100 yen ($0.75). But BoJ governor Haruhiko Kuroda said last week that "monetary tightening is not at all a suitable measure" for Japan, whose economy is still recovering from the pandemic, according to Kyodo News. Watch | Asia stocks hit 3-week top, dollar near 5 weeks low He also pointed to the benefits of a weaker yen for Japanese exporters, whose overseas profits are inflated when they are repatriated and have seen their stock prices rise in recent months. The weaker yen could also be a boon for the tourism sector, with Japan cautiously reopening to foreign visitors now allowed in on group tours. "The weak yen helps to support Japan's export sector directly, and a weaker exchange rate also contributes to looser monetary conditions domestically," said Alvin Tan, head of Asia forex strategy at RBC Capital Markets in Singapore. "These will help drive the economic recovery further," he told AFP. Although "higher import prices will negatively affect consumers" and the weaker yen will contribute to inflation, particularly given Japan's reliance on energy imports, this could also be "seen as a positive", he said. Also read | Dollar gains as US stocks fall, ECB decision on tap "It could help to deepen more persistent inflation expectations in a country that has suffered under deflation for so many years." The yen's trajectory may depend on how the US Fed acts in its September meeting, with worse-than-expected inflation figures for May raising expectations of further rate hikes. But "there is still a lot of time left until then," said Kinouchi, and other factors may also be at play including energy prices rising further after a European Union ban on most Russian oil imports. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Yen slides to 24-year low against dollar

Shares were mostly lower in Asia on Thursday as investors watched for fresh signs of inflation and crude oil prices hovered above USD 122 a barrel, adding to price pressures.

Benchmarks declined across the region, except in Tokyo, where a weakening yen sent issues of some Japanese exporters higher. Nintendo Co. Issues surged 1.9 per cent in afternoon trading, while Honda Motor Co. Stocks gained more than 0.9 per cent.

The Japanese yen has recently slid to fresh 20-year lows against the US dollar, a trend the International Monetary Fund and other analysts expect to continue for a while because of higher interest rates in the US and Europe, compared to Japan, where long-term interest rates remain at near-zero.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/dollar-gains-as-us-stocks-fall-ecb-decision-on-tap-486375">Dollar gains as US stocks fall, ECB decision on tap</a>

The dollar was trading at 133.80 Japanese yen after hitting 134 yen levels earlier in the day, down from 134.20 yen late Wednesday. The euro cost USD 1.0721, inching up from USD 1.0718.

The Governing Council of the European Central Bank is holding a monetary policy meeting later in the day.

Comments from Christine Lagarde, head of the European Central Bank, have markets anticipating an interest rate hike in July, with possibly more to follow.

"Nonetheless, the economic recovery remains fragile and subject to down side risks from geo-political risks, eroding real incomes, supply chain constraints and limited fiscal support",&nbsp;said Venkateswaran Lavanya of the Asia &amp; Oceania Treasury Department at Mizuho Bank in Singapore.

To that end, ECB will not want to throw the baby out with the bath water,&nbsp;calibrating monetary tightening in a more sustained, even if slow, pace,&nbsp;she said in a commentary.

Watch |&nbsp;Oil hovers near 13-week high, China optimism backs price surge

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Japan's benchmark Nikkei 225 gained 0.2 per cent in afternoon trading to 28,290.06. Australia's S&amp;P/ASX 200 slipped 1.2 per cent to 7,037.10. South Korea's Kospi fell 0.4 per cent to 2,616.46. Hong Kong's Hang Seng shed 1.0 per cent to 21,788.494, while the Shanghai Composite lost&nbsp;1.1 per cent to 3,228.08.

The impact from inflation has worsened since Russia's invasion of Ukraine, which has put more pressure on energy and food prices. US&nbsp;Crude oil prices rose 2.3 per cent on Wednesday and are up 63 per cent for the year, while wheat prices are up 39 per cent in 2022.

Supply chains have also gotten tighter following a series of lockdowns for Chinese cities fighting COVID-19 cases.

In energy trading, benchmark US crude was up 29 cents to USD 122.40 a barrel. It gained USD 2.70 on Wednesday.

Brent crude, the international standard for pricing oil, gained 35 cents to USD 123.93 a barrel.

Greater inflation pressure from the conflict in Ukraine and lockdowns in China prompted the Organisation for Economic Cooperation and Development to cut its forecast for economic growth, following several other international groups, including the World Bank.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/pakistani-rupee-nosedives-to-all-time-low-of-20283-against-us-dollar-486263">Pakistani rupee nosedives to all-time low of 202.83 against US dollar</a>

Treasury Secretary Janet Yellen, testifying before the the Senate Finance Committee on Tuesday, said she expects inflation to remain elevated and bringing that down is a top priority.&nbsp;

The Fed is widely expected to raise its key short-term interest rate by half a percentage point at its meeting next week.

That would be the second straight increase of double the usual amount, and investors expect a third in July.

Stocks fell broadly on Wall Street, erasing most of their gains for the week, as investors were discouraged to see more evidence of inflation's impact on businesses and another gloomy outlook on the global economy.

The S&amp;P 500 index fell 1.1 per cent to 4,115.77. The Dow Jones Industrial Average shed 0.8 per cent to 32,910.90 and the Nasdaq slipped 0.7 per cent to 12,086.27.

Smaller company stocks fell more than the rest of the market.

The Russell 2000 declined 1.5 per cent to 1,891.01.

Bond yields rose. The yield on the 10-year Treasury, which banks use to set rates on mortgages and other loans, rose to 3.02 per cent from 2.97 per cent late Tuesday.

The big concerns on Wall Street remain rising inflation and whether the Federal Reserve's shift to aggressively raise interest rates will help temper the impact or possibly push the economy into a recession.

The Fed's goal is to slow economic growth enough to cushion inflation's impact. Demand for goods had been outpacing supplies and production capacity through most of the post-pandemic recovery.

But, investors worry the Fed could go too far too fast in raising rates, nudging the US economy into a recession.

The next big update on inflation arrives Friday, when the US government releases its latest reading on the consumer price index.&nbsp; 
&nbsp;

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Shares were mostly lower in Asia on Thursday as investors watched for fresh signs of inflation and crude oil prices hovered above USD 122 a barrel, adding to price pressures.

Shares were mostly lower in Asia on Thursday as investors watched for fresh signs of inflation and crude oil prices hovered above USD 122 a barrel, adding to price pressures. Benchmarks declined across the region, except in Tokyo, where a weakening yen sent issues of some Japanese exporters higher. Nintendo Co. Issues surged 1.9 per cent in afternoon trading, while Honda Motor Co. Stocks gained more than 0.9 per cent. The Japanese yen has recently slid to fresh 20-year lows against the US dollar, a trend the International Monetary Fund and other analysts expect to continue for a while because of higher interest rates in the US and Europe, compared to Japan, where long-term interest rates remain at near-zero. Also read | Dollar gains as US stocks fall, ECB decision on tap The dollar was trading at 133.80 Japanese yen after hitting 134 yen levels earlier in the day, down from 134.20 yen late Wednesday. The euro cost USD 1.0721, inching up from USD 1.0718. The Governing Council of the European Central Bank is holding a monetary policy meeting later in the day. Comments from Christine Lagarde, head of the European Central Bank, have markets anticipating an interest rate hike in July, with possibly more to follow. "Nonetheless, the economic recovery remains fragile and subject to down side risks from geo-political risks, eroding real incomes, supply chain constraints and limited fiscal support", said Venkateswaran Lavanya of the Asia & Oceania Treasury Department at Mizuho Bank in Singapore. To that end, ECB will not want to throw the baby out with the bath water, calibrating monetary tightening in a more sustained, even if slow, pace, she said in a commentary. Watch | Oil hovers near 13-week high, China optimism backs price surge Japan's benchmark Nikkei 225 gained 0.2 per cent in afternoon trading to 28,290.06. Australia's S&P/ASX 200 slipped 1.2 per cent to 7,037.10. South Korea's Kospi fell 0.4 per cent to 2,616.46. Hong Kong's Hang Seng shed 1.0 per cent to 21,788.494, while the Shanghai Composite lost 1.1 per cent to 3,228.08. The impact from inflation has worsened since Russia's invasion of Ukraine, which has put more pressure on energy and food prices. US Crude oil prices rose 2.3 per cent on Wednesday and are up 63 per cent for the year, while wheat prices are up 39 per cent in 2022. Supply chains have also gotten tighter following a series of lockdowns for Chinese cities fighting COVID-19 cases. In energy trading, benchmark US crude was up 29 cents to USD 122.40 a barrel. It gained USD 2.70 on Wednesday. Brent crude, the international standard for pricing oil, gained 35 cents to USD 123.93 a barrel. Greater inflation pressure from the conflict in Ukraine and lockdowns in China prompted the Organisation for Economic Cooperation and Development to cut its forecast for economic growth, following several other international groups, including the World Bank. Also read | Pakistani rupee nosedives to all-time low of 202.83 against US dollar Treasury Secretary Janet Yellen, testifying before the the Senate Finance Committee on Tuesday, said she expects inflation to remain elevated and bringing that down is a top priority. The Fed is widely expected to raise its key short-term interest rate by half a percentage point at its meeting next week. That would be the second straight increase of double the usual amount, and investors expect a third in July. Stocks fell broadly on Wall Street, erasing most of their gains for the week, as investors were discouraged to see more evidence of inflation's impact on businesses and another gloomy outlook on the global economy. The S&P 500 index fell 1.1 per cent to 4,115.77. The Dow Jones Industrial Average shed 0.8 per cent to 32,910.90 and the Nasdaq slipped 0.7 per cent to 12,086.27. Smaller company stocks fell more than the rest of the market. The Russell 2000 declined 1.5 per cent to 1,891.01. Bond yields rose. The yield on the 10-year Treasury, which banks use to set rates on mortgages and other loans, rose to 3.02 per cent from 2.97 per cent late Tuesday. The big concerns on Wall Street remain rising inflation and whether the Federal Reserve's shift to aggressively raise interest rates will help temper the impact or possibly push the economy into a recession. The Fed's goal is to slow economic growth enough to cushion inflation's impact. Demand for goods had been outpacing supplies and production capacity through most of the post-pandemic recovery. But, investors worry the Fed could go too far too fast in raising rates, nudging the US economy into a recession. The next big update on inflation arrives Friday, when the US government releases its latest reading on the consumer price index. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Asian shares fall as oil lingers above USD 120, yen sinks

The dollar index gained on Wednesday, reversing earlier declines as US equities fell and boosted the appeal of the safe haven, while the euro strengthened ahead of a European Central Bank policy announcement.

The greenback reached a fresh two-decade high against the yen, which weakened to hit 134.47 per dollar, its softest since Feb. 27, 2002, and the euro achieved its highest level against the safe-haven yen since Jan. 5, 2015.

The Bank of Japan remains one of the few global central banks to maintain a dovish stance while others have adopted tightening policies of hiking interest rates to combat inflation.

The European Central Bank (ECB) is expected on Thursday to take a hawkish stance, with interest rate hikes to begin in July as traders price in 75 basis points of hikes by September.

"The bulls are hoping to see a 50 (basis point hike) and they will probably get a 25," said Edward Moya, senior market analyst at Oanda in New York. "The expectation is that where global bond yields are and specifically across Europe there is a probably a lot more upside and that is why you are getting some good moves here, eventually the market is really going to fixate on exactly what (ECB president Christine) Lagarde`s message is going to be at that press conference."

The yen has now fallen for 10 straight trading sessions against the euro, its longest losing streak in eight months.

The dollar index rose 0.107% to 102.520, with the euro up 0.15% to $1.0715.

The euro rose 1.3% against the yen to 143.780.

Following the ECB announcement, investors will get a read on U.S. inflation on Friday in the form of the May consumer price index (CPI). Expectations call for a year-over-year inflation increase of 8.3%, unchanged from April.

In a choppy session, stocks on Wall Street were lower, with the S&amp;P down more than 1% as the 10-year U.S. Treasury yield climbed above 3% following a soft auction and as inflation concerns simmered with oil prices hitting a 13-week high.

The data is highly unlikely to alter the Fed`s current rate hike path. Traders have completely priced in a rate hike of at least 50 basis points, according to CME`s FedWatch Tool https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html?redirect=/trading/interest-rates/fed-funds.html.

Japanese policymakers stood by their stance supporting a weaker yen on Wednesday, saying it is a positive for the economy.

The Japanese yen weakened 1.17% versus the greenback at 134.17 per dollar, while Sterling was last trading at $1.2541, down 0.37% on the day.

The pound was down against the dollar as political risks and fears of a slowing economy weighed on sterling in the wake of a confidence vote on British Prime Minister Boris Johnson on Monday.

In cryptocurrencies, bitcoin last fell 3.55% to $30,216.58.

The dollar index gained on Wednesday, reversing earlier declines as US equities fell and boosted the appeal of the safe haven, while the euro strengthened ahead of a European Central Bank policy announcement.

The dollar index gained on Wednesday, reversing earlier declines as US equities fell and boosted the appeal of the safe haven, while the euro strengthened ahead of a European Central Bank policy announcement. The greenback reached a fresh two-decade high against the yen, which weakened to hit 134.47 per dollar, its softest since Feb. 27, 2002, and the euro achieved its highest level against the safe-haven yen since Jan. 5, 2015. The Bank of Japan remains one of the few global central banks to maintain a dovish stance while others have adopted tightening policies of hiking interest rates to combat inflation. The European Central Bank (ECB) is expected on Thursday to take a hawkish stance, with interest rate hikes to begin in July as traders price in 75 basis points of hikes by September. "The bulls are hoping to see a 50 (basis point hike) and they will probably get a 25," said Edward Moya, senior market analyst at Oanda in New York. "The expectation is that where global bond yields are and specifically across Europe there is a probably a lot more upside and that is why you are getting some good moves here, eventually the market is really going to fixate on exactly what (ECB president Christine) Lagarde`s message is going to be at that press conference." The yen has now fallen for 10 straight trading sessions against the euro, its longest losing streak in eight months. The dollar index rose 0.107% to 102.520, with the euro up 0.15% to $1.0715. The euro rose 1.3% against the yen to 143.780. Following the ECB announcement, investors will get a read on U.S. inflation on Friday in the form of the May consumer price index (CPI). Expectations call for a year-over-year inflation increase of 8.3%, unchanged from April. In a choppy session, stocks on Wall Street were lower, with the S&P down more than 1% as the 10-year U.S. Treasury yield climbed above 3% following a soft auction and as inflation concerns simmered with oil prices hitting a 13-week high. The data is highly unlikely to alter the Fed`s current rate hike path. Traders have completely priced in a rate hike of at least 50 basis points, according to CME`s FedWatch Tool https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html?redirect=/trading/interest-rates/fed-funds.html. Japanese policymakers stood by their stance supporting a weaker yen on Wednesday, saying it is a positive for the economy. The Japanese yen weakened 1.17% versus the greenback at 134.17 per dollar, while Sterling was last trading at $1.2541, down 0.37% on the day. The pound was down against the dollar as political risks and fears of a slowing economy weighed on sterling in the wake of a confidence vote on British Prime Minister Boris Johnson on Monday. In cryptocurrencies, bitcoin last fell 3.55% to $30,216.58.

Dollar gains as US stocks fall, ECB decision on tap

The Japanese yen hit a 20-year low against the dollar on Tuesday, supported by high US Treasury yields and likely comparatively good US economic data this week.

Japanese Yen falls to fresh 20-year-low

Japanese Yen has remained under pressure and Australian dollar was bruised by latest lockdowns in china following new covid-19 outbreaks.

Australian dollar bruised by lockdown, US fed reserve set to raise rates

Stressing on the need for currency stability, Japanese Finance Minister Shunichi Suzuki said that he was watching market moves "carefully."&nbsp;

This comes at a time when the Japanese currency Yen has been drastically declining against the dollar. Speaking to reporters, he said, "I won't comment on the currency market itself, but stability is important above all. From that standpoint, we'll closely watch currency market moves and their impact on the Japanese economy."

It is feared that the decreasing value of the yen may push up import prices and households' cost of living at a time when the economy is already fighting against the ongoing pandemic.&nbsp;

<a href="https://www.wionews.com/world/global-food-prices-rose-sharply-during-2021-hitting-a-10-year-high-un-442881">Also read |&nbsp;Global food prices rose ‘sharply’ during 2021, hitting a 10-year high: UN</a>

However, there are a few Japanese policymakers who have favour a weak yen as it provides exporters with a competitive advantage.

As per BOJ governor, Haruhiko Kuroda, the boost to export volume from a weak yen may have declined when compared to the past. This is because more Japanese companies have shifted their production abroad.

Kuroda also highlighted that the hit to households may have increased due to Japan's dependency on imports of raw materials.

This could also politically affect Prime Minister Fumio Kishida as wholesale inflation is already hitting a record high. As per JP Morgan analysts, the yen's real effective rate has gone down to its lowest level in 50 years.

"In a way, a weak yen reflects Japan's fundamentals," one ministry said on condition of anonymity. However, it further added that Tokyo was ready to step in if yen declines become too sharp.

(With inputs from agencies)

Stressing on the need for currency stability, Japanese Finance Minister Shunichi Suzuki said that he was watching market moves "carefully." This comes at a time when the Japanese currency Yen has been drastically declining against the dollar.

Stressing on the need for currency stability, Japanese Finance Minister Shunichi Suzuki said that he was watching market moves "carefully." This comes at a time when the Japanese currency Yen has been drastically declining against the dollar. Speaking to reporters, he said, "I won't comment on the currency market itself, but stability is important above all. From that standpoint, we'll closely watch currency market moves and their impact on the Japanese economy." It is feared that the decreasing value of the yen may push up import prices and households' cost of living at a time when the economy is already fighting against the ongoing pandemic. Also read | Global food prices rose ‘sharply’ during 2021, hitting a 10-year high: UN However, there are a few Japanese policymakers who have favour a weak yen as it provides exporters with a competitive advantage. As per BOJ governor, Haruhiko Kuroda, the boost to export volume from a weak yen may have declined when compared to the past. This is because more Japanese companies have shifted their production abroad. Kuroda also highlighted that the hit to households may have increased due to Japan's dependency on imports of raw materials. This could also politically affect Prime Minister Fumio Kishida as wholesale inflation is already hitting a record high. As per JP Morgan analysts, the yen's real effective rate has gone down to its lowest level in 50 years. "In a way, a weak yen reflects Japan's fundamentals," one ministry said on condition of anonymity. However, it further added that Tokyo was ready to step in if yen declines become too sharp. (With inputs from agencies)

Japan highlights need for currency stability as value of yen decreases

A gauge of <a href="https://www.wionews.com/business-economy/global-markets-asian-shares-lower-as-investors-book-decade-end-profits-271229">Asian shares</a> was toppled from an 18-month top on Monday as heightened Middle East tensions sent investors scurrying for the safety of gold, which hit a near seven-year high while oil jumped to four-month peaks.

The United States detected a heightened state of alert by Iran's missile forces, as President <a href="https://www.wionews.com/business-economy/global-stocks-rattled-after-donald-trump-says-no-deadline-on-us-china-trade-deal-266025">Donald Trump</a> warned the US&nbsp;would strike back, "perhaps in a disproportionate manner," if Iran attacked any American person or target.

Iraq's parliament on Sunday recommended all foreign troops be ordered out of the country after the US&nbsp;killing of a top Iranian military commander and an Iraqi militia leader.

Spot gold surged 1.5 per cent&nbsp;to $1,579.55 per ounce in jittery trade and reached its highest since April 2013.

<a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">Oil prices</a> added to their gains on fears any conflict in the region could disrupt global supplies.

Brent crude futures rose $1.46 to $70.06 a barrel, while US crude climbed $1.17 to $64.22.

"The risk of further escalation has clearly gone up&nbsp;given the direct attack on Iran, Iran's threat of retaliation and Trump's desire to look tough - posing the threat of higher oil prices," said Shane Oliver, chief economist at AMP Capital.

"Historically though oil prices need to double to pose a severe threat to global growth and we are a long way from that."

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MSCI's broadest index of Asia-Pacific shares outside Japan&nbsp;slipped 0.7 per cent.

Japan's Nikkei slid almost 2 per cent&nbsp;in a sour return from holiday, while E-Mini futures for the S&amp;P 500&nbsp; fell 0.5&nbsp;per cent in very choppy trade.

Chinese shares opened in the red too, with the blue-chip CSI300 index off a shade while Australian shares were off 0.4 per cent.

"Geopolitical tensions look like remaining elevated in the coming days, so lending support to oil prices and keeping risk asset markets on the defensive," said Ray Attrill, head of FX strategy at National Australia Bank.

Sovereign bonds benefited from the safety bid with yields on 10-year Treasuries down at 1.769&nbsp;per cent&nbsp;having fallen 10 basis points on Friday. Treasury futures gained 5-1/2 ticks.

In currency markets, the Japanese yen remained the favoured safe harbour courtesy of Japan's massive holdings of foreign assets. Investors assume Japanese funds would repatriate their money during a truly global crisis, pushing the yen higher.

On Monday, the dollar was last at 107.98 yen, after falling to a three-month trough of 107.78 earlier in the session. The euro likewise eased to 120.55 yen having hit a three-week low.

The dollar was steadier against the other majors, with the euro little changed at $1.1161. Against a basket of currencies, the dollar was holding at 96.86.

The risk-sensitive currencies of Australia and New Zealand were on track for their fourth straight session of losses.

A gauge of Asian shares was toppled from an 18-month top on Monday as heightened Middle East tensions sent investors scurrying for the safety of gold, which hit a near seven-year high while oil jumped to four-month peaks.

A gauge of Asian shares was toppled from an 18-month top on Monday as heightened Middle East tensions sent investors scurrying for the safety of gold, which hit a near seven-year high while oil jumped to four-month peaks. The United States detected a heightened state of alert by Iran's missile forces, as President Donald Trump warned the US would strike back, "perhaps in a disproportionate manner," if Iran attacked any American person or target. Iraq's parliament on Sunday recommended all foreign troops be ordered out of the country after the US killing of a top Iranian military commander and an Iraqi militia leader. Spot gold surged 1.5 per cent to $1,579.55 per ounce in jittery trade and reached its highest since April 2013. Oil prices added to their gains on fears any conflict in the region could disrupt global supplies. Brent crude futures rose $1.46 to $70.06 a barrel, while US crude climbed $1.17 to $64.22. "The risk of further escalation has clearly gone up given the direct attack on Iran, Iran's threat of retaliation and Trump's desire to look tough - posing the threat of higher oil prices," said Shane Oliver, chief economist at AMP Capital. "Historically though oil prices need to double to pose a severe threat to global growth and we are a long way from that." Watch Video: MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.7 per cent. Japan's Nikkei slid almost 2 per cent in a sour return from holiday, while E-Mini futures for the S&P 500 fell 0.5 per cent in very choppy trade. Chinese shares opened in the red too, with the blue-chip CSI300 index off a shade while Australian shares were off 0.4 per cent. "Geopolitical tensions look like remaining elevated in the coming days, so lending support to oil prices and keeping risk asset markets on the defensive," said Ray Attrill, head of FX strategy at National Australia Bank. Sovereign bonds benefited from the safety bid with yields on 10-year Treasuries down at 1.769 per cent having fallen 10 basis points on Friday. Treasury futures gained 5-1/2 ticks. In currency markets, the Japanese yen remained the favoured safe harbour courtesy of Japan's massive holdings of foreign assets. Investors assume Japanese funds would repatriate their money during a truly global crisis, pushing the yen higher. On Monday, the dollar was last at 107.98 yen, after falling to a three-month trough of 107.78 earlier in the session. The euro likewise eased to 120.55 yen having hit a three-week low. The dollar was steadier against the other majors, with the euro little changed at $1.1161. Against a basket of currencies, the dollar was holding at 96.86. The risk-sensitive currencies of Australia and New Zealand were on track for their fourth straight session of losses.

Gold, oil prices soar amid US-Iran tensions

Investors rushed into&nbsp;safe-haven&nbsp;assets on Friday after&nbsp;US&nbsp;airstrikes in Iraq killed a senior Iranian military official, sending the Japanese&nbsp;yen&nbsp;to a three-month high, while the&nbsp;<a href="https://www.wionews.com/business-economy/new-year-cheer-rupee-rises-15-paise-to-6962-against-us-dollar-in-early-trade-187635">US&nbsp;dollar&nbsp;index</a> was knocked by the weakest domestic factory activity in a decade.

In addition to the&nbsp;yen,&nbsp;US&nbsp;Treasuries, German bunds and gold rallied after the overnight airstrike&nbsp;in Baghdad killed <a href="https://www.wionews.com/world/deputy-commander-of-quds-force-to-replace-soleimani-irans-supreme-leader-ayatollah-ali-khamenei-271905">Qassem&nbsp;Soleimani</a>, Tehran's most prominent military commander and the architect of its growing military influence in the Middle East.

"Overall, geopolitical risk premia have risen substantially overnight," said Karl Schamotta, chief market strategist at Cambridge Global Payments. Investors were "really looking for&nbsp;safe&nbsp;havens and a port in the storm," he added.

The Japanese&nbsp;yen&nbsp;had risen as high as 107.82 per&nbsp;dollar&nbsp;and was last up 0.48 per cent&nbsp;on the day at 108.04. The&nbsp;yen&nbsp;is often seen as a&nbsp;haven&nbsp;from risk, given Japan's status as the world's largest creditor nation. A holiday in Tokyo also made for thin conditions, exaggerating the move.

The&nbsp;US&nbsp;dollar&nbsp;index&nbsp;initially benefited from the move into&nbsp;safe-haven&nbsp;assets, but those gains were erased after the Institute for Supply Management (ISM) reported that the manufacturing sector contracted significantly in December. It was last up 0.03 per cent&nbsp;on the day at 96.873.

The attack sparked concerns about crude supply disruptions, lifting oil prices more than $3. Petrocurrencies gained slightly on the higher crude prices, but those were then largely offset by the overall move away from risk, said Schamotta.

The&nbsp;US&nbsp;manufacturing sector contracted in December by the most in more than a decade, with order volumes crashing to a near 11-year low and factory employment falling for a fifth straight month, according to a report from <a href="https://www.wionews.com/business-economy/us-manufacturing-contracts-for-first-time-in-3-years-industry-survey-247442">ISM</a> released on Friday.

"That is a depressing number," said Schamotta.

It suggests "<a href="https://www.wionews.com/world/us-farmers-see-another-bleak-year-despite-phase-1-trade-deal-271864">trade war-related</a> uncertainty has actually damaged the manufacturing sector on a sustained basis and that points to weakness in GDP, particularly in the coming quarter because what you're likely to see is an inventory drawdown as opposed to continued build."

The longer-term effects on the&nbsp;dollar&nbsp;are unclear. Though it weakened Friday, the greenback may ultimately benefit if slower&nbsp;US&nbsp;manufacturing dents hopes for global growth in 2020.

"The idea that other countries that are large exporters to the&nbsp;US&nbsp;might see a large rebound in the near term,&nbsp;that idea is losing traction here," said Schamotta.

Investors rushed into safe-haven assets on Friday after US airstrikes in Iraq killed a senior Iranian military official, sending the Japanese yen to a three-month high, while the US dollar index was knocked by the weakest domestic factory activity in a decade.

Investors rushed into safe-haven assets on Friday after US airstrikes in Iraq killed a senior Iranian military official, sending the Japanese yen to a three-month high, while the US dollar index was knocked by the weakest domestic factory activity in a decade. In addition to the yen, US Treasuries, German bunds and gold rallied after the overnight airstrike in Baghdad killed Qassem Soleimani, Tehran's most prominent military commander and the architect of its growing military influence in the Middle East. "Overall, geopolitical risk premia have risen substantially overnight," said Karl Schamotta, chief market strategist at Cambridge Global Payments. Investors were "really looking for safe havens and a port in the storm," he added. The Japanese yen had risen as high as 107.82 per dollar and was last up 0.48 per cent on the day at 108.04. The yen is often seen as a haven from risk, given Japan's status as the world's largest creditor nation. A holiday in Tokyo also made for thin conditions, exaggerating the move. The US dollar index initially benefited from the move into safe-haven assets, but those gains were erased after the Institute for Supply Management (ISM) reported that the manufacturing sector contracted significantly in December. It was last up 0.03 per cent on the day at 96.873. The attack sparked concerns about crude supply disruptions, lifting oil prices more than $3. Petrocurrencies gained slightly on the higher crude prices, but those were then largely offset by the overall move away from risk, said Schamotta. The US manufacturing sector contracted in December by the most in more than a decade, with order volumes crashing to a near 11-year low and factory employment falling for a fifth straight month, according to a report from ISM released on Friday. "That is a depressing number," said Schamotta. It suggests "trade war-related uncertainty has actually damaged the manufacturing sector on a sustained basis and that points to weakness in GDP, particularly in the coming quarter because what you're likely to see is an inventory drawdown as opposed to continued build." The longer-term effects on the dollar are unclear. Though it weakened Friday, the greenback may ultimately benefit if slower US manufacturing dents hopes for global growth in 2020. "The idea that other countries that are large exporters to the US might see a large rebound in the near term, that idea is losing traction here," said Schamotta.

Safe-haven yen lifted, US dollar hits in Grim data after Qassem Soleimani strike

Most&nbsp;Asian&nbsp;currencies&nbsp;firmed on Thursday, as a volatile&nbsp;dollar&nbsp;weakened broadly on&nbsp;mixed&nbsp;signals&nbsp;over the state of<a href="https://www.wionews.com/world/us-china-trade-talks-to-resume-thursday-white-house-254346">&nbsp;trade&nbsp;talks between Washington and Beijing.</a>

Dampened sentiment following suggestions that the Chinese delegation might cut the ministerial-level talks short and leave Washington on Thursday were offset by a Bloomberg report that the United States is weighing a currency pact with China as part of a partial deal.

Traders also took note of a New York Times report that Washington will issue licenses allowing some US&nbsp;companies to supply non-sensitive goods to China's Huawei, as the&nbsp;dollar&nbsp;eased against a basket of major&nbsp;currencies.

"News of Huawei and the currency pact released together with the strong (yuan) fix, underscores the fact that PBoC (People's Bank Of China) is (ready) ...to give a strong guidance for the CNY as a potential pact with the US&nbsp;could be at hand," a Maybank note said.

US&nbsp;Federal Reserve meeting minutes released on Wednesday were largely in line with expectations and had little market impact.

The yuan&nbsp;strengthened 0.3 per cent&nbsp;and the Singapore&nbsp;dollar&nbsp;firmed 0.2per cent.

The Philippine peso&nbsp;firmed marginally. Data showed that August exports rose 0.6 per cent, while imports slumped 11.8 per cent, narrowing the country's August deficit.

Taiwan's financial markets were closed for a holiday.

The Korean won&nbsp;bucked the trend to slip 0.3 per cent&nbsp;ahead of talks with Japan on Friday over tighter export controls from Tokyo. The talks are part of a dispute settlement process through the World&nbsp;Trade&nbsp;Organisation.

The won is the worst performer among&nbsp;Asian&nbsp;currencies&nbsp;this year.

The prolonged Sino-US&nbsp;trade&nbsp;conflict and the dispute with Japan has dealt a huge blow to South Korea's&nbsp;trade-reliant economy. In September, exports slumped 11.7 per cent, shrinking for the 10th consecutive month.

Most Asian currencies firmed on Thursday, as a volatile dollar weakened broadly on mixed signals over the state of trade talks between Washington and Beijing. Dampened sentiment following suggestions that the Chinese delegation might cut the ministerial-level talks short and leave Washington on Thursday were offset by a Bloomberg report that the United States is weighing a currency pact with China as part of a partial deal.

Most Asian currencies firmed on Thursday, as a volatile dollar weakened broadly on mixed signals over the state of trade talks between Washington and Beijing. Dampened sentiment following suggestions that the Chinese delegation might cut the ministerial-level talks short and leave Washington on Thursday were offset by a Bloomberg report that the United States is weighing a currency pact with China as part of a partial deal. Traders also took note of a New York Times report that Washington will issue licenses allowing some US companies to supply non-sensitive goods to China's Huawei, as the dollar eased against a basket of major currencies. "News of Huawei and the currency pact released together with the strong (yuan) fix, underscores the fact that PBoC (People's Bank Of China) is (ready) ...to give a strong guidance for the CNY as a potential pact with the US could be at hand," a Maybank note said. US Federal Reserve meeting minutes released on Wednesday were largely in line with expectations and had little market impact. The yuan strengthened 0.3 per cent and the Singapore dollar firmed 0.2per cent. The Philippine peso firmed marginally. Data showed that August exports rose 0.6 per cent, while imports slumped 11.8 per cent, narrowing the country's August deficit. Taiwan's financial markets were closed for a holiday. The Korean won bucked the trend to slip 0.3 per cent ahead of talks with Japan on Friday over tighter export controls from Tokyo. The talks are part of a dispute settlement process through the World Trade Organisation. The won is the worst performer among Asian currencies this year. The prolonged Sino-US trade conflict and the dispute with Japan has dealt a huge blow to South Korea's trade-reliant economy. In September, exports slumped 11.7 per cent, shrinking for the 10th consecutive month.

Most Asian currencies rise as dollar slips; trade signals mixed

The safe-haven dollar and yen fell on Wednesday as risk sentiment improved after global political worries eased with what markets perceived as positive news in <a href="https://www.wionews.com/world/hong-kong-leader-carrie-lam-announces-withdrawal-of-extradition-bill-report-247563">Hong Kong</a>, Italy and Britain.

The dollar index slid for a second straight session, while the yen, which draws safe-haven bids in times of geopolitical stress, dropped for the first time in four days against the greenback.

Risk appetite rose on reports Hong Kong leader Carrie Lam would announce the formal withdrawal of an extradition bill that triggered months of unrest.

In Italy, the 5-Star Movement approved a coalition deal with the Democratic Party, paving the way for a new government, while lawmakers opposed to a no-deal Brexit gained the upper hand in Britain, triggering a global equities rally.

Edward Moya, senior market analyst at OANDA in New York, said the dollar's weakness was triggered by this "risk-on move in Hong Kong that gave Hong Kong equities one of the best moves in a few years." That has boosted appetite for riskier currencies that have generally higher yields, he added.

"Everyone has been waiting for this major dollar reversal for quite some time. It has never come to fruition," Moya said. "This is providing a little bit of unwinding of some dollar bullish positions."

In mid-morning trading, the dollar was last down 0.4 per cent against a basket of major currencies, at 98.656.

The yen fell against the dollar, which rose 0.3 per cent to 106.27 yen. It also declined against the euro, which gained 0.7 per cent&nbsp;to 117.045 yen.

The euro also rose 0.4 per cent versus the dollar to $1.1011 after comments from Christine Lagarde, who will likely be the European Central Bank's next president, introduced some doubt over the scale of an ECB stimulus package expected next week.

Lagarde said highly accommodative monetary policy for a prolonged period was necessary but she added that the bank needed to be mindful of the negative side-effects of such tools.

Expectations for an interest cut, the relaunch of asset purchases and other ECB measures to stimulate the economy have weighed on the euro. On Tuesday, it hit a 28-month low around $1.0924.

The dollar's weakness helped China's offshore yuan pull away further from record lows plumbed earlier this week. The Chinese currency was last up 0.4 per cent&nbsp;against the dollar, which fell to 7.1511 yuan.

The British pound recovered Tuesday's losses, when it hit a three-year low, after the latest parliamentary attempt to stop a no-deal Brexit took a step forward.

Sterling bounced 0.9 per cent&nbsp;to $1.2185 , and against the euro it rallied 0.4 per cent&nbsp;to 90.45 pence.

Lawmakers who defeated Prime Minister Boris Johnson's government on a crucial motion late on Tuesday are expected to introduce a bill in parliament seeking to stop Britain from leaving the European Union on Oct. 31 without transitional arrangements.

The safe-haven dollar and yen fell on Wednesday as risk sentiment improved after global political worries eased with what markets perceived as positive news in Hong Kong, Italy and Britain.

The safe-haven dollar and yen fell on Wednesday as risk sentiment improved after global political worries eased with what markets perceived as positive news in Hong Kong, Italy and Britain. The dollar index slid for a second straight session, while the yen, which draws safe-haven bids in times of geopolitical stress, dropped for the first time in four days against the greenback. Risk appetite rose on reports Hong Kong leader Carrie Lam would announce the formal withdrawal of an extradition bill that triggered months of unrest. In Italy, the 5-Star Movement approved a coalition deal with the Democratic Party, paving the way for a new government, while lawmakers opposed to a no-deal Brexit gained the upper hand in Britain, triggering a global equities rally. Edward Moya, senior market analyst at OANDA in New York, said the dollar's weakness was triggered by this "risk-on move in Hong Kong that gave Hong Kong equities one of the best moves in a few years." That has boosted appetite for riskier currencies that have generally higher yields, he added. "Everyone has been waiting for this major dollar reversal for quite some time. It has never come to fruition," Moya said. "This is providing a little bit of unwinding of some dollar bullish positions." In mid-morning trading, the dollar was last down 0.4 per cent against a basket of major currencies, at 98.656. The yen fell against the dollar, which rose 0.3 per cent to 106.27 yen. It also declined against the euro, which gained 0.7 per cent to 117.045 yen. The euro also rose 0.4 per cent versus the dollar to $1.1011 after comments from Christine Lagarde, who will likely be the European Central Bank's next president, introduced some doubt over the scale of an ECB stimulus package expected next week. Lagarde said highly accommodative monetary policy for a prolonged period was necessary but she added that the bank needed to be mindful of the negative side-effects of such tools. Expectations for an interest cut, the relaunch of asset purchases and other ECB measures to stimulate the economy have weighed on the euro. On Tuesday, it hit a 28-month low around $1.0924. The dollar's weakness helped China's offshore yuan pull away further from record lows plumbed earlier this week. The Chinese currency was last up 0.4 per cent against the dollar, which fell to 7.1511 yuan. The British pound recovered Tuesday's losses, when it hit a three-year low, after the latest parliamentary attempt to stop a no-deal Brexit took a step forward. Sterling bounced 0.9 per cent to $1.2185 , and against the euro it rallied 0.4 per cent to 90.45 pence. Lawmakers who defeated Prime Minister Boris Johnson's government on a crucial motion late on Tuesday are expected to introduce a bill in parliament seeking to stop Britain from leaving the European Union on Oct. 31 without transitional arrangements.

Dollar, yen fall as global tensions ease

Yen&nbsp;and&nbsp;bond&nbsp;bulls&nbsp;charged on Monday while stocks struggled again, amid ongoing worries that a prolonged <a href="https://www.wionews.com/opinions/us-china-trade-war-points-to-the-real-crisis-that-global-leaders-must-confront-at-g20-summit-231112">US-China trade war </a>and damaging Brexit could tip-top economies into recession.

Early gains for Europe's main bourses had quickly disappeared and Wall Street futures were already in the red after Asia-Pacific had also finished lower overnight.

That was despite a more than 1% rally for Chinese stocks after the yuan had avoided further drama and financial regulators there had relaxed margin financing rules late on Friday.

Safety remained the name of the game.

FX harbour, the Japanese&nbsp;yen, hit its highest in nearly a year and a half at 105.32&nbsp;yen&nbsp;against the dollar and gained against the euro and Brexit-bruised British pound too.

"Risk indicators and&nbsp;global&nbsp;markets&nbsp;have become shakier and the&nbsp;yen&nbsp;is reflecting those concerns, and safe-haven shelters like the&nbsp;yen&nbsp;and the Swiss franc should continue to benefit," said Commerzbank currency strategist Esther Reichelt.

In&nbsp;bond&nbsp;markets, the demand for guaranteed income was also unrelenting.

A rally in Italy's debt gave it an extra boost after Fitch kept country's rating steady despite the prospect of snap elections in the euro zone's third-biggest economy now looming.

There were signs that League leader Matteo Salvini's call for those snap elections was facing mounting resistance from other parties whose support will be needed for the plan to succeed.

"Fitch kept Italy's rating unchanged and some market participants may be betting that a snap election could be delayed," said DZ Bank rates strategist Sebastian Fellechner, referring to the fall in yields.

Economists are also watching for a batch of&nbsp;global&nbsp;data this week.

Goldman Sachs became the latest to cut its US&nbsp;growth forecast at the weekend, warning that a US&nbsp;China trade deal now looked unlikely before the 2020 US&nbsp;presidential election.

One week ago, China allowed the yuan to break through the key 7-per-dollar level for the first time since 2008, prompting Washington to label Beijing a currency manipulator and sparking market ructions.

The International Monetary Fund said on Friday that it stood by its assessment that the value of China's yuan was largely in line with economic fundamentals.

Mixed messages

On Friday, Wall Street snapped a three-day winning streak after US&nbsp;President Donald Trump said Washington was continuing trade talks with Beijing, but that the U.S. was not going to make a deal for now.

Those comments helped to drive a late sell-off in a volatile session that saw the Dow Jones Industrial Average fall 0.34%, the S&amp;P 500 lost 0.66% and the Nasdaq Composite dropped 1%.

White House trade adviser Peter Navarro subsequently said that the United States was still planning to hold another round of trade talks with Chinese negotiators.

Wall Street futures were down 0.5%.

In commodities, oil prices dipped on growth and trade worries, having risen sharply on Friday on a drop-in European inventories and production cuts by the Organization of the Petroleum Exporting Countries.

International benchmark Brent crude futures were at $58.16 a barrel by 0829 GMT, down 37 cents from their previous settlement.

US West Texas Intermediate (WTI) CLc1 futures were at $53.89 per barrel, down 61 cents from their last close.

Both benchmarks fell last week, with Brent losing more than 5% and WTI falling about 2%.

"The market is facing a buyers' strike," said Michael Tran, commodity strategist at RBC Capital&nbsp;Markets, noting the low level of investors' long positions betting on higher prices.

"Despite the laundry list of disruptions and additional barrels at risk, investor length is currently near a multi-year low."

Argentina's&nbsp;markets&nbsp;were ready for a slump too after voters soundly rejected President Mauricio Macri's austere economic policies in primary elections at the weekend, raising serious questions about his chances of re-election in October.

Argentina's 2028-maturing, euro-denominated government&nbsp;bond&nbsp;was down more than 11 cents in European trading, Tradeweb data showed.

Yen and bond bulls charged on Monday while stocks struggled again, amid ongoing worries that a prolonged US-China trade war and damaging Brexit could tip-top economies into recession.

Yen and bond bulls charged on Monday while stocks struggled again, amid ongoing worries that a prolonged US-China trade war and damaging Brexit could tip-top economies into recession. Early gains for Europe's main bourses had quickly disappeared and Wall Street futures were already in the red after Asia-Pacific had also finished lower overnight. That was despite a more than 1% rally for Chinese stocks after the yuan had avoided further drama and financial regulators there had relaxed margin financing rules late on Friday. Safety remained the name of the game. FX harbour, the Japanese yen, hit its highest in nearly a year and a half at 105.32 yen against the dollar and gained against the euro and Brexit-bruised British pound too. "Risk indicators and global markets have become shakier and the yen is reflecting those concerns, and safe-haven shelters like the yen and the Swiss franc should continue to benefit," said Commerzbank currency strategist Esther Reichelt. In bond markets, the demand for guaranteed income was also unrelenting. A rally in Italy's debt gave it an extra boost after Fitch kept country's rating steady despite the prospect of snap elections in the euro zone's third-biggest economy now looming. There were signs that League leader Matteo Salvini's call for those snap elections was facing mounting resistance from other parties whose support will be needed for the plan to succeed. "Fitch kept Italy's rating unchanged and some market participants may be betting that a snap election could be delayed," said DZ Bank rates strategist Sebastian Fellechner, referring to the fall in yields. Economists are also watching for a batch of global data this week. Goldman Sachs became the latest to cut its US growth forecast at the weekend, warning that a US China trade deal now looked unlikely before the 2020 US presidential election. One week ago, China allowed the yuan to break through the key 7-per-dollar level for the first time since 2008, prompting Washington to label Beijing a currency manipulator and sparking market ructions. The International Monetary Fund said on Friday that it stood by its assessment that the value of China's yuan was largely in line with economic fundamentals. Mixed messages On Friday, Wall Street snapped a three-day winning streak after US President Donald Trump said Washington was continuing trade talks with Beijing, but that the U.S. was not going to make a deal for now. Those comments helped to drive a late sell-off in a volatile session that saw the Dow Jones Industrial Average fall 0.34%, the S&P 500 lost 0.66% and the Nasdaq Composite dropped 1%. White House trade adviser Peter Navarro subsequently said that the United States was still planning to hold another round of trade talks with Chinese negotiators. Wall Street futures were down 0.5%. In commodities, oil prices dipped on growth and trade worries, having risen sharply on Friday on a drop-in European inventories and production cuts by the Organization of the Petroleum Exporting Countries. International benchmark Brent crude futures were at $58.16 a barrel by 0829 GMT, down 37 cents from their previous settlement. US West Texas Intermediate (WTI) CLc1 futures were at $53.89 per barrel, down 61 cents from their last close. Both benchmarks fell last week, with Brent losing more than 5% and WTI falling about 2%. "The market is facing a buyers' strike," said Michael Tran, commodity strategist at RBC Capital Markets, noting the low level of investors' long positions betting on higher prices. "Despite the laundry list of disruptions and additional barrels at risk, investor length is currently near a multi-year low." Argentina's markets were ready for a slump too after voters soundly rejected President Mauricio Macri's austere economic policies in primary elections at the weekend, raising serious questions about his chances of re-election in October. Argentina's 2028-maturing, euro-denominated government bond was down more than 11 cents in European trading, Tradeweb data showed.

Yen and bond bulls charge on as share markets falter

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