Continuation of Yen Decline

Continuation of Yen Decline

Continuation of Yen Decline: The Japanese yen continued its losses in the Asian market on Monday, declining against a basket of global currencies.
It extended its decline for the eighth consecutive day against the US dollar, reaching its lowest level in two months.
This is due to the Bank of Japan’s recent decision to postpone reducing bond purchase incentives until its July meeting.


Continuation of Yen Decline
Australian Dollar Outperformance
Federal Reserve


Continuation of Yen Decline

The yen is nearing trading below the 160 yen per dollar barrier,
which the Bank of Japan considers the red line for intervention in the foreign exchange
market to protect the local currency from excessive depreciation.

Currently, a summary of the opinions expressed at the Bank of Japan’s monetary policy meeting this month is curbing yen losses.
Some policymakers called for raising interest rates at the appropriate time, seeing the risk of inflation exceeding set expectations.


Australian Dollar Outperformance

The Australian dollar outperformed most major and minor currencies in the foreign exchange market last week,
thanks to the Reserve Bank of Australia’s policy and the reduced likelihood of a rate cut this year.
The Australian dollar was considered an excellent investment opportunity, witnessing increased purchases,
especially with the diminished likelihood of a rate cut in the Australian economy this year.

The Reserve Bank of Australia decided to keep interest rates unchanged for the fifth consecutive time,
warning of reasons to remain vigilant against inflation risks.
This development pushed the markets to reduce the likelihood of a rate cut this year.




Remarks by Some Federal Reserve Members on Interest Rates

Last Friday, former Federal Reserve member James Bullard announced
His expectation was that the pace of interest rate cuts by the Federal Open Market Committee would be slow,
pointing to the continued strength of the US economy.

Earlier, Federal Reserve member Adriana Kugler stated that if the US economy develops as expected,
The Fed will likely ease its monetary policy later this year.
She added that the latest inflation data were encouraging despite the continued rise in inflation rates.

Kugler noted that the US monetary policy remains sufficiently restrictive and that the economy is heading in the right direction.
She expressed optimism about improving supply and indicated that weakened demand would support the continued decline in inflation rates.

Continuation of Yen Decline