The Dollar index slightly rebounded during Asian trade session giving investors another point to ponder for the currency.
The U.S. currency was changing hands at ¥108.93
INSIGHT: WEDNESDAY: The global dominant currency, Dollar (USDJPY) settled at ¥108.40 later in New York.
Despite several discourses regarding Japanese currency to be in absolute power, the commodity-dominant currency gained back its momentum after losing victory pace on 03 May – it had plunged to 18-month low of ¥105.55.
The greenback is struggling to go further upside as it is weighed down by selling on recovery (Source: Market Watch).
“The dollar has come back to ¥109 from ¥105. But it’s just back to where it was three weeks ago before expectations for the Bank of Japan’s extra stimulus mounted. There are no fresh trading cues to bring dollar higher toward ¥110.” – Head of Tokyo global markets research at Bank of Tokyo-Mitsubishi UFJ, Mister Minori Uchida
Moreover, he confessed market participants’ faith at stake upon BOJ’s monetary policy – pressurizing Yen further.
In addition to this, the Federal Reserve is likely to opt a slow strategy for raising interest rates in 2016 – quivering Dollar’s bull imprint.
“Even assuming strong consumption figures tomorrow which may not immediately signal the U.S. economic strength and rate increase.” – Uchida said keeping in view an announcement of U.S April retail sales scheduled on Friday.
Exclusive data obtained by Market Watchers have cited (for readers’ concern):
|The WSJ Dollar Index (BUXX), a measure of the Dollar against a basket of major currencies, was bullish worth 0.11% at 86.33|
|Euro (EURUSD) positioned itself at $1.1422, in comparison to $1.1426. The common currency (EURJPY) settled at ¥124.23 from ¥123.92|
UPDATE: Investors showed muted reaction to BOJ Gov. Haruhiko Kuroda’s *remarks in parliament on Thursday.
(*Central bank’s current monetary policy, consisting of negative interest rates and asset purchases, is “appropriate” even though it has been unable to achieve its inflation target)