Dollar steady, yen near 7-month high ahead of Fed, BOJ meetings
Traders priced an 86% chance of a Fed hike after August U.S. consumer prices accelerated, while the yen gained 4% this month on BOJ expectations.
- The yen hovered near a seven-month high on Monday as investors anticipated pivotal policy decisions from the Federal Reserve and Bank of Japan in a critical week for monetary policy.
- Traders priced in an 86% chance of a Federal Reserve rate increase after data on Friday showed U.S. consumer prices accelerated in August, with Treasury yields reflecting shifting rate expectations.
- Global policymakers face erratic pricing pressures as the six-month-long Israeli war on Iran pushed oil prices well above $100 per barrel; The European Central Bank raised rates last week and signaled further hikes.
- James Athey, fixed-income portfolio manager at Marlborough, warned that not hiking would be a "catastrophic error," while Securities analysts cautioned that failing to signal future rate increases risks a knee-jerk rally back to 157–160.
- For the yen to strengthen further, the BOJ must signal commitment to faster rate hikes, though Shane Oliver, chief economist at AMP, noted that waiting complicates the Fed's October meeting strategy ahead of U.S. midterm elections.
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13 Articles
Dollar steady, yen near 7-month high ahead of Fed, BOJ meetings - Regional Media News
By Ankur Banerjee SINGAPORE, Sept 14 (Reuters) - The dollar was steady on Monday, with the yen holding on to its recent sharp gains and hovering near a seven-month high as investors pondered possible rate hikes from the Federal Reserve and Bank of Japan in [...]
The Economic Times
Dollar steady, yen near 7-month high ahead of Fed, BOJ meetings
The dollar maintained its stability as the yen approached a peak not seen in seven months this week. With key policymakers weighing potential interest rate hikes from both the Federal Reserve and the Bank of Japan, investors are keenly watching for a possible rate increase following the latest consumer price indices. Meanwhile, the European Central Bank has already raised rates and hinted at the likelihood of additional measures.
Crypto Briefing
Cryptocurrency News | Cryptocurrency Prices | Market CapDollar firms, yen wobbles ahead of Fed and BOJ decisions
Global currency dynamics may shift significantly, impacting trade balances and economic strategies amid central bank policy decisions and geopolitical tensions.
The dollar is quickly recovering from losses at the start of the trading week. Investors are bracing for the Fed's decisions and...
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