Dollar steady before US inflation data, yen under pressure
The greenback held near recent levels as traders awaited U.S. inflation data, while the yen stayed weak on intervention caution and pension fund comments.
- The dollar index remained flat at 101.27 on Tuesday as traders awaited June CPI data, with inflation risks remaining in the spotlight ahead of Fed Chair Kevin Warsh's congressional testimony.
- Tokyo reported no imminent plans to change state pension fund allocations on Monday, tempering expectations of near-term support for domestic assets after Finance Minister Satsuki Katayama's Friday comments sparked initial optimism.
- Economists project 0.2% growth in June CPI, though a 0.3% reading would signal sustained inflation; Ray Attrill, head of FX strategy at National Australia Bank, warned "that may well be a trigger for a Fed rate hike as early as the July meeting."
- Escalating tensions between the United States and Iran drove oil prices up more than 9% to a one-month high on Monday, with President Donald Trump announcing a naval blockade on Tehran following weekend missile exchanges.
- Broader currency and crypto markets reflected shifting sentiment, with New Zealand's kiwi gaining 0.24% to $0.5762 and Ether rising 0.56% to $1,775.54 amid uncertainty over inflation and geopolitical risks.
15 Articles
15 Articles
Dollar dips ahead of US inflation data, supported by rate outlook
The Economic Times
Dollar steady before US inflation data, yen under pressure
The dollar remained steady as traders awaited United States inflation data. Middle East tensions caused oil prices to increase significantly on Monday. The Japanese yen held a soft tone due to intervention concerns and policy comments. Federal Reserve officials indicated potential rate hikes if inflation persists above target. Investors are closely watching upcoming economic indicators and geopolitical developments.
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After six sessions trading within a tight range of 111.95 to 112.81, the AUD/JPY pair moved decisively higher on Tuesday. It surpassed the 113.00 psychological level and continued its ascent today, nearing 113.39. So, what changed? Speculation Over the World’s Largest Pension Fund Triggers Yen Selloff Headlines regarding Japan’s Government Pension Investment Fund (GPIF) appear to be the primary driver behind the yen’s recent decline. Reports sug…
Dollar gains while Yen weakens amid pension fund uncertainty
The US dollar rose modestly on Monday, supported by escalating military tensions between the US and Iran in the Gulf and firm statements from a Federal Reserve governor hinting at possible near-term interest rate hikes. President Donald Trump announced the reinstatement of a US naval blockade on Iran and plans to ensure the Strait of Hormuz remains open, for a fee, after fresh missile and drone attacks between US and Iranian forces. By the numbe…
Dollar steady ahead of inflation data
The US Dollar Index eased about 0.1% to around 101.2 The U.S. dollar traded little changed against most Asian currencies on Tuesday as investors awaited U.S. inflation data and comments from central bank Governor Christopher Waller for new clues on the interest-rate outlook, while renewed Middle East tensions kept oil prices near four-week highs and inflation risks firmly in focus. The US Dollar Index eased about 0.1% to around 101.2 as traders …
On the 14th, the yen traded in the low 162 yen range against the dollar in the Tokyo foreign exchange market.
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