Finance News

Story: Yen Poised for Biggest Weekly Gain Since July as Fed Doubts Emerge

By Evie Vavasseur

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Fed Expectations Shift, Dollar Softens. Recent U.S. economic data came in suggesting growth is decelerating.

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Bank of Japan Stays Quiet Near Key 145 Level. The yen's climb is getting extra attention because of where it's trading. At 145.

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Investors Adjust Portfolios as Dollar Outlook Softens. The broader forex market is recalibrating. Investors have been adjusting portfolios, moving toward…

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The yen is on track for its biggest weekly gain since July. It climbed nearly 0.4% to 145.53 per dollar on Monday, pushed higher by fading bets that the Federal Reserve will keep…

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Several Asian currencies moved with the yen. The South Korean won gained 0.3%, and the Chinese yuan edged up 0.2% against the dollar.

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Recent U.S. economic data came in suggesting growth is decelerating. Traders took that as a signal that the Fed may be closer to done than previously thought.

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It's worth putting this in context. Emerging market currencies have a well-known relationship with U.S. monetary policy.

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Bond markets in the region have also moved. Asian bond yields have adjusted as traders recalibrate positions based on where they think U.S. monetary policy is headed.

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The yen's climb is getting extra attention because of where it's trading. At 145.53 per dollar, it's hovering right near the 145 level — a threshold that has historically made…

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Read also: Yen Soars to One-Month High Amid Speculation of Rate Hike and Forex Intervention

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So far, nothing. The Bank of Japan hasn't offered any clear comment on its currency strategy.

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Traders are cautious. The yen could keep moving if U.S. data continues to disappoint. But any surprise — a strong jobs number, a hawkish Fed comment — could snap this trade back…

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The broader forex market is recalibrating. Investors have been adjusting portfolios, moving toward currencies that stand to gain from a softer U.S. monetary stance.

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Market sentiment is cautious overall, though. It's not like anyone's calling a definitive Fed pivot. Investors are watching every U.S.

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Read also: Wallers Rate Pause Hint Ignites Global Bond Rally as Yields Plummet

The Currency Analytics

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