Yen stable ahead of BOJ meeting, euro eyes weekly decline

14 Jun 2024 , 09:05 AM

The politically troubled euro was heading for a weekly loss. The yen was on the defensive on Friday ahead of a policy decision from the Bank of Japan that might see it further decrease its huge monetary support.

Gains versus the euro and bids for safe haven assets helped put the dollar ahead of the curve as concerns about political unpredictability in France and the larger euro zone grew in response to the country’s announcement of a snap ballot.

The yen was slightly weaker at 157.08 per dollar and was expected to lose 0.2% on a weekly basis, although most of the movement was muted in advance of the BOJ’s two-day monetary policy meeting.

Although it is anticipated that the central bank would keep interest rates extremely low, it may announce a gradual reduction in its enormous asset purchases as part of a gradual shift away from quantitative easing.

In the wider market, most currencies on Friday found it difficult to gain ground against a slightly stronger US dollar, with sterling sliding down 0.08% to $1.2752. It was intended to increase 0.3% per week.

The New Zealand dollar dropped 0.26% to $0.6152, while the Australian dollar fell 0.18% to $0.6625.

The number of Americans submitting new claims for unemployment benefits reached a 10-month high last week, according to data released on Thursday. Separate data also suggested that producer prices unexpectedly fell in May, raising hopes that the Federal Reserve may begin its easing cycle in September.

The data came after the surprise finding on Wednesday that consumer prices in May remained steady in the United States.

The Fed surprised market participants by taking a more hawkish stance at the end of its monetary policy meeting this week, even though they only saw one rate cut in 2024. Instead, investors focused on the softer-than-expected data, which caused Wall Street to soar to all-time highs and Treasury yields to decline.

For feedback and suggestions, write to us at [e-mail]

For opening a demat account click on: https://www.indiainfoline.com/

For doing stock trading & investments, go to: https://ttweb.indiainfoline.com/trade/Login.aspx

For loans, go to: https://www.iifl.com/