Apr 24, 2024 (MENAFN via COMTEX) --
(MENAFN) On Tuesday, the Japanes Yen experienced a significant decline, reaching multi-year lows against both the dollar and the euro, prompting heightened vigilance among traders for potential government intervention ahead of the Bank of Japan's upcoming meeting. Concurrently, the British pound also depreciated to its lowest level in several months following dovish comments from monetary policymakers. The euro, buoyed by stronger-than-expected business activity data from France and Germany, surged to 165.62 yen, marking its highest level since 2008. Similarly, the dollar strengthened to 154.87 yen, its highest level since 1990, nearing the crucial 155 yen threshold, which many traders perceive as a trigger for Japanese authorities to intervene in the foreign exchange market.
The anticipation surrounding the Bank of Japan's meeting this week is palpable, with markets expecting new forecasts to be issued on Friday, indicating the central bank's outlook on inflation remaining around its two percent target over the next three years. This forecast signals the bank's preparedness to cautiously raise interest rates from their current levels close to zero, further influencing currency movements in the yen-dollar and yen-euro pairs.
Meanwhile, the euro demonstrated resilience against the dollar, edging up by 0.2 percent to $1.06753, following a period of stabilization subsequent to earlier losses in the month. Against the pound sterling, the euro recorded a modest increase of 0.16 percent, reaching 86.39 pence, after briefly touching a four-month high of 86.43 pence. This uptick came in the wake of positive German Purchasing Managers' Index data, contributing to the euro's strength against its British counterpart.
Overall, the currency markets remain highly sensitive to central bank policies and economic indicators, with the Japanese yen's depreciation sparking speculation of potential intervention from authorities. As investors await further developments from the Bank of Japan's meeting and assess ongoing trends in global economic data, currency movements are poised to remain dynamic, with implications for cross-border trade, investment, and monetary policy decisions.
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COMTEX_451365313/2604/2024-04-24T18:51:19
