(Bloomberg) -- A rush by Japan’s life insurers to protect themselves against a stronger yen may have the paradoxical effect of accelerating gains in the currency.Most Read from BloombergMusk’s Neuralink Hopes to Implant Computer in Human Brain in Six MonthsGoldman Jolts Traders With Bonus Warning After Bumper HaulMusk Suspends Ye From Twitter After Offensive Image PostBeverly Hills Cop Was California’s Highest-Paid Municipal WorkerAn Arizona County’s Refusal to Certify Election Results Could Cos
Investors are unwinding one of this year's most popular currency trades: [betting against the Japanese yen](https://www.wsj.com/articles/japanese-yen-attracts-hedge-funds-as-a-speculators-currency-11660272676). As of about 8.30 a.m. ET Thursday, the yen had rallied 1.5% against the dollar, with $1 buying about 136 yen. That adds to a 7.7% gain in November, its best month since October 2008. The yen's rise is part of a broader rally lifting beaten-down global currencies against the U.S. dollar. C
The dollar tumbled more than 1.5% to a three-month low against the yen on Thursday, after comments by Fed Chair Jerome Powell that U.S. rate hikes could be scaled back "as soon as December" though the euro failed to climb past a major resistance level. The aggressive pace of Federal Reserve rate increases this year has sent the dollar soaring, thanks to higher U.S. yields and fears the central bank would push the U.S. economy into recession in its attempts to combat inflation, but Powell said on Wednesday that "slowing down at this point is a good way to balance the risks". The dollar-yen pair is extremely sensitive to changes in long-term U.S. Treasury yields, which fell after Powell's comments to a near two-month low overnight of 3.6%.
(Bloomberg) -- Japan’s yen and Korea’s won spearheaded a surge in Asian currencies Thursday, as prospects for a slower pace of Federal Reserve rate hikes triggered broad weakness in the dollar.Most Read from BloombergMusk’s Neuralink Hopes to Implant Computer in Human Brain in Six MonthsAn Arizona County’s Refusal to Certify Election Results Could Cost GOP a House SeatScientists Revive 48,500-Year-Old ‘Zombie Virus’ Buried in IceFTX Missing Billions Remain Mystery After Bankman-Fried GrillingNew
The dollar tumbled to a three-month low against the yen on Thursday as traders focussed on comments by Federal Reserve Chair Jerome Powell that interest rate hikes could be scaled back "as soon as December". Powell said on Wednesday that "slowing down at this point is a good way to balance the risks" but added that controlling inflation "will require holding policy at a restrictive level for some time". The greenback was last down 1.32% at 136.295 yen, after falling to 136.205, its level since Aug. 26.
The U.S. dollar slumped in early European trade Thursday after Federal Reserve chair Jerome Powell pointed to smaller rate hikes ahead, boosting risk appetite to the detriment of this safe haven. "Moderating the pace of rate increases may come as soon as the December meeting," Powell said in a speech on Wednesday at the Brookings Institution event in Washington. USD/JPY fell 1.1% to 136.50, dropping to a three-month low as U.S. yields fell in response to Powell's comments, with the benchmark 10-year yield dropping to a near two-month low of 3.6%.
The dollar tumbled to a three-month low versus the yen on Thursday as traders keyed on comments by Federal Reserve Chair Jerome Powell that interest rate hikes could be scaled back "as soon as December." The dollar-yen pair is extremely sensitive to changes in long-term U.S. yields, which slid to a nearly two-month low of 3.6% overnight after Powell said at the Brookings Institution in Washington that "slowing down at this point is a good way to balance the risks." The greenback was 0.48% lower at 137.39 yen in the Asian morning, after earlier dipping to 137.27 for the first time since Aug. 26, with yields on 10-year Treasury notes standing at 3.62% in Tokyo.
(Bloomberg) -- The yen is rebounding rapidly after tumbling last month to its weakest level in four decades and there could be more turbulence ahead if the currency echoes its behavior from previous tumultuous episodes.Most Read from BloombergApple to Lose 6 Million iPhone Pros From Tumult at China PlantNext Covid-19 Strain May be More Dangerous, Lab Study ShowsThere’s a Job-Market Riddle at the Heart of the Next RecessionStocks Hit by Fedspeak as China Woes Boost Havens: Markets Wrap“The potent
Amundi, Europe's largest fund manager, said on Thursday that it was underweight global stock markets, favoured the yen and expected the U.S. dollar to weaken longer-term as interest rates near a peak and the growth outlook sours. In its 2023 global outlook, Amundi said one of its main themes for next year was that "bonds are back," adding that it favoured government bonds and investment grade debt. Vincent Mortier, group chief investment officer at Amundi, which manages 1.9 trillion euros ($1.98 trillion) worth of assets, told Reuters the firm remained cautious on the outlook for equity markets but hoped to dip back in next year.
(Bloomberg) -- Japan’s trade deficit widened in October, as the country’s import bill continued to rocket upward, fueled by a historic slide in the yen that has already helped push the economy back into reverse.Most Read from BloombergXi Looks Away From Putin Toward West in World Stage ReturnGOP Retakes US House by Slim Margin in Washington Power ShiftUkraine Latest: Biden Says Missile Likely Not Fired From RussiaElizabeth Holmes Says US Is Wrong to Suggest She Marry Her Partner to Pay DebtsXi C
The U.S. dollar rose against the yen and held firm against the euro on Tuesday after more Federal Reserve officials made the case for even tighter U.S. monetary policy. The dollar index, which measures the currency against six counterparts including the yen and euro, slipped 0.1% to 106.85, holding most of its hefty gains from Monday, when it rebounded from the previous session's three-month low of 106.27. Fed Vice Chair Lael Brainard on Monday echoed weekend comments by Fed Governor Christopher Waller that interest rates need to keep rising to battle inflation, although potentially at a slower pace.
The U.S. dollar climbed versus the yen and stayed firm against other major peers on Tuesday as more Federal Reserve officials made the case for even tighter U.S. monetary policy. The greenback edged up against sterling and hovered more than 1% above its two-month trough to the euro after Fed Vice Chair Lael Brainard on Monday echoed weekend comments by Fed Governor Christopher Waller that interest rates need to keep rising to battle inflation, although potentially at a slower pace. The dollar index, which measures the currency against six counterparts including the yen, euro and sterling, edged 0.03% higher to 107.00 early in the Asian day.