The Japanese Yen Retreats Despite New Warnings: The yen’s value fell again to 154 yen to the dollar, giving up last week’s gains
even after Masato Kanda, the senior currency diplomat
the government is ready to combat unregulated foreign exchange movements driven by speculation.
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Oil Erases Gains to Hover Broadly
The Australian Dollar Retreats
The Japanese Yen Retreats Despite New Warnings
Oil Erases Gains to Hover Broadly
Brent futures erased their gains and settled at $83.5 per barrel on Tuesday,
not far from a nearly two-month low of $82.9 on May 3,
as perceptions of supply abundance outweighed lingering geopolitical concerns.
The Israeli military cabinet unanimously rejected a ceasefire agreement pressed by mediators and accepted
by Hamas before continuing its strikes in Rafah, Gaza.
Also, relatively weak supply in global markets prompted Saudi Arabia to raise the official selling price
of its light crude by 90 cents per barrel for June,
exceeding market estimates by 30 cents and increasing expectations that OPEC’s largest member
will push for production cuts extending into the year’s second quarter.
The Australian Dollar Retreats After the Reserve Bank of Australia’s Decision
The Australian dollar fell to around 0.66 US dollars, retreating from its two-month highs,
as the Reserve Bank of Australia kept the interest rate unchanged at 4.35% in a move widely expected.
Still, it did not provide a clear hawkish message that markets expected.
The Reserve Bank of Australia acknowledged that recent progress in reducing inflation had
stalled and maintained its future guidance of “not ruling out anything at home or abroad.”
The Japanese Yen Retreats Despite New Warnings
The yen’s value fell again to 154 yen to the dollar, giving up last week’s gains even after Masato Kanda,
the senior currency diplomat said the government is ready
to combat unregulated foreign exchange movements driven by speculation.
However, Kanda declined to confirm whether the Japanese authorities were behind the
suspected intervention last week when the yen rebounded by up to 5.2% from its lowest to highest.
Bank of Japan data indicates that it spent nearly $60 billion to defend the currency.
During the weekend, U.S. Treasury Secretary Janet Yellen also said
that interventions should be rare and consultations should occur,
indicating a lack of coordination between Japan and the United States on foreign exchange policy
The Japanese Yen Retreats Despite New Warnings