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☆ Yen weakens past 145 per dollar, yuan propped by stimulus hopes
▼ + stars: | 2023-06-30 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

SINGAPORE, June 30 (Reuters) - The yen weakened past the closely watched 145 per dollar level on Friday, keeping traders wary of potential intervention by Japanese authorities, while the yuan crept higher as hopes for further stimulus from Beijing gathered steam. The onshore yuan fell to its lowest since November at 7.2615 per dollar shortly after trading opened on Friday, but was last marginally higher at 7.2505 per dollar. "PMIs released... reinforced the need for stimulus support. The Australian dollar , often used as a liquid proxy for the yuan, tracked the Chinese currency higher and rose 0.29% to $0.6635. Further clarity on the bloc's inflation outlook will come later on Friday, with June's flash inflation data due to be released.

Persons: Shunichi Suzuki, Saktiandi Supaat, PMIs, Christopher Wong, Carol Kong, Sterling, Elwin de Groot, Rae Wee, Sam Holmes Organizations: Bank of Japan's, Japan's Finance, Tokyo perked, New Zealand, U.S, U.S . Federal Reserve, Commerce Department, Commonwealth Bank of Australia, Bank of England, Central Bank, Rabobank, Thomson Locations: SINGAPORE, Beijing, Asia, Tokyo, U.S

However, there is uncertainty about how long households can weather price hikes and generate inflation driven more by demand, which holds the key to whether BOJ's 2% target can be achieved in a sustainable manner, analysts say. The Tokyo core consumer price index (CPI), which excludes volatile fresh food but includes fuel costs, rose 3.2% in June from a year earlier, accelerating from a 3.1% gain in May. While companies offered wage hikes unseen in three decades this year, inflation-adjusted real pay continues to fall in a sign of pain consumers are feeling from the wave of price hikes. BOJ Governor Kazuo Ueda has repeatedly said the BOJ will maintain ultra-loose policy until stronger wage growth keeps inflation sustainably around its 2% target. "The BOJ may revise up its inflation forecast but probably keep policy steady in July," said Takeshi Minami, chief economist at Norinchukin Research Institute.

Persons: Yoshiki Shinke, Teikoku Databank, Kazuo Ueda, Ryozo Himino, Takeshi Minami, Takahiko Wada, Leika, Satoshi Sugiyama, Kantaro, Sam Holmes Organizations: Bank of Japan, Dai, Research, Reuters, BOJ, Norinchukin Research, Thomson Locations: Tokyo, TOKYO

The inflation figures for Tokyo, which is seen as a leading indicator of nationwide trends, will likely keep alive expectations the Bank of Japan (BOJ) will phase out its massive stimulus this year. The increase in the Tokyo core consumer price index (CPI), which excludes volatile fresh food but includes fuel costs, followed a 3.1% gain in May and compared with a median market forecast for a 3.3% rise. With inflation already exceeding its target, markets are rife with speculation the BOJ could soon phase out ultra-loose monetary policy under new governor Kazuo Ueda. Ueda has repeatedly said inflation will slow in coming months as cost-push factors dissipate, and that the BOJ will maintain ultra-loose policy until stronger wage growth ensures Japan can sustainably see inflation hit its 2% target. Reporting by Takahiko Wada and Leika Kihara; Editing by Sam HolmesOur Standards: The Thomson Reuters Trust Principles.

Persons: Kazuo Ueda, Ueda, Takahiko Wada, Leika, Sam Holmes Organizations: Bank of Japan, Thomson Locations: Tokyo, TOKYO, Japan's, Japan

☆ Dollar holds near 7-month high vs yen on policy split; Swedish crown record low
▼ + stars: | 2023-06-29 | by ( Samuel Indyk | Kevin Buckland | ) www.reuters.com time to read: +4 min

Japanese yen and U.S. dollar banknotes are seen in this illustration picture taken June 15, 2022. The ministry of finance and BOJ intervened in the currency market last autumn when the dollar strengthened beyond 145 yen. “They’re expressing confidence that a faster rate of QT is going to deliver a stronger crown and I think that’s a bit unproven,” ING’s Turner said. The dollar added 0.1% to 7.2492 yuan in the offshore market, taking it close to the previous day’s 7-1/2-month low of 7.2694. The Russian rouble weakened past 87 against the dollar to a 15-month low, hampered by domestic political risk concerns after an aborted mutiny over the weekend.

Persons: Florence Lo, Jerome Powell, Kazuo Ueda, Ueda, “, BOJ, ”, Chris Turner, ING’s Turner, hasn’t, Russian rouble Organizations: U.S, REUTERS, Bank of Japan, ING, Reuters, People’s Bank of, Citi Locations: U.S, there’s, Spain, tomorrow’s, North Rhine Westphalia, Germany’s, People’s Bank of China, Russian

☆ Dollar near 7-1/2-month high versus yen as central bankers reaffirm policy divergence
▼ + stars: | 2023-06-29 | by ( Kevin Buckland | ) www.reuters.com time to read: +3 min

TOKYO (Reuters) - The U.S. dollar hovered near a 7-1/2-month high against the Japanese yen after the heads of the respective central banks reaffirmed the stark divergence in their policy paths at a European Central Bank conference overnight. Japanese yen and U.S. dollar banknotes are seen in this illustration picture taken June 15, 2022. The ministry of finance and BOJ intervened in the currency market last autumn when the dollar strengthened beyond 145 yen. The U.S. currency eased back 0.15% to 144.265 yen in the Asian morning on Thursday. China’s yuan was not far from Wednesday’s 7-1/2-month low of 7.2694 per dollar in offshore trading.

Persons: Florence Lo, Jerome Powell, Christine Lagarde, Kazuo Ueda, Andrew Bailey, Ueda, “, BOJ, Shinichi Kadota, “ I’m, Sterling Organizations: U.S, European Central Bank, REUTERS, Bank of Japan, Bank of England, Barclays, Reserve Bank of Australia Locations: TOKYO, Tokyo

☆ Dollar index hits two-week high after data; yen remains soft
▼ + stars: | 2023-06-29 | by ( ) www.cnbc.com time to read: +3 min

Hundred dollar bills are seen in this photo illustraiton in Warsaw, Poland on Sept. 21, 2022. The U.S. dollar index climbed to a two-week high on Thursday after economic data showed the labor market remained on a solid footing, giving the Federal Reserve a possible cushion to continue raising interest rates. He said he did not see inflation coming down to the Fed's 2% target until at least 2025. The dollar index was up 0.204% at 103.150 after earlier climbing to 103.44, its highest level since June 13. The dollar strengthened against the Japanese yen for a third straight day, hitting a fresh 7-1/2 month high of 144.90, as U.S. and Japanese central bank policy plans are expected to remain at opposite ends of the spectrum.

Persons: Jerome Powell, Raphael Bostic, Christine Lagarde, Andrew Bailey, Kazuo Ueda, Huw Roberts, Roberts, CME's Organizations: U.S, Federal Reserve, Reuters, Commerce Department, European Central Bank, Atlanta Federal Reserve, Bank of England, Bank of Japan, Fed Locations: Warsaw, Poland, Bank, Europe, Spain, Italy, Swedish

☆ A.I., rate cuts and Japan's rebound: Asia stocks are looking 'much more promising' than U.S. peers
▼ + stars: | 2023-06-29 | by ( Lim Hui Jie | ) www.cnbc.com time to read: +6 min

The Japanese flag flutters over the Bank of Japan (BoJ) head office building (bottom) in Tokyo on April 27, 2022. At first glance, Asian stocks as a whole have more modest gains so far this year compared with their U.S. and European counterparts. But Asia is more economically diverse than Europe and the U.S., and there are still bright spots in the region, especially in Japan and South Korea. In April, the BOJ announced it will conduct a "a broad-perspective review of [its] monetary policy," which could span 12-18 months. But Lombard Odier still expects the BOJ to end the yield curve control policy before this review is over.

Persons: Kazuhiro Nogi, Nomura, Daniela Gombert, bode, Gombert, Kazuo Ueda, Ueda, Lombard Odier, Morgan Stanley, Google's Bard, Ernie Bot, Lombard, Marco Barresi, Barresi Organizations: Bank of Japan, Afp, Getty, U.S, Asia, Nomura, Nikkei, Bank of, Private, U.S . Federal, Chips, Lombard Odier Locations: Tokyo, Asia, Europe, U.S, Japan, South Korea, India, Southeast Asia, Bank of Japan, Indonesia, A.I, OpenAI, Taiwan, China

☆ Asian shares subdued, yen and yuan hover near 8-mth troughs
▼ + stars: | 2023-06-29 | by ( Stella Qiu | ) www.reuters.com time to read: +4 min

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was flat, while markets in Singapore, India and Malaysia are closed for holidays. Japan's Nikkei (.N225), however, gained 1% and was headed for a monthly rise of 8.5% and a quarterly jump of 19%. The offshore yuan hovered near an eight-month trough at 7.24 per dollar on Thursday, after the central bank fixed the daily guidance at the weakest level since November. European Central Bank President Christine Lagarde, on the other hand, cemented expectations for a ninth consecutive rise in euro zone rates in July. U.S. crude futures were little changed at 69.55 per barrel, and Brent crude was down 0.1% at $74.00 per barrel.

Persons: HSI, Jerome Powell, Stephen Wu, Christine Lagarde, Kazuo Ueda, Mark McCormick, hawkish, Powell, Brent, Stella Qiu, Lincoln Organizations: SYDNEY, Japan's Nikkei, Nasdaq, Apple, Dow, Micron Technology, European Central Bank, Commonwealth Bank of Australia, ECB, Bank of Japan, U.S, Reuters, TD Securities, Thomson Locations: Asia, Pacific, Japan, Singapore, India, Malaysia

[1/2] An aerial view shows cars for export at a port in Yantai, Shandong province, China May 3, 2023. China Daily via REUTERS/File PhotoJune 30 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. Goldman's emerging markets financial conditions index is the lowest in 16 months, which stands in contrast to developed economies where rates, bond yields borrowing costs of all stripes are rising sharply. The U.S. two-year yield jumped 15 basis points on Thursday, its biggest rise in a month, and traders are now pricing in at least one more quarter point rate hike this year. Here are key developments that could provide more direction to markets on Friday:- China PMIs (June)- Japan - Tokyo inflation (June)- U.S. PCE inflation (May)By Jamie McGeever;Our Standards: The Thomson Reuters Trust Principles.

Persons: Jamie McGeever, Goldman Sachs, Jerome Powell, China PMIs Organizations: REUTERS, Asia's, Bank of Japan, U.S, PCE, Thomson, Reuters Locations: Yantai, Shandong province, China, Japan, Tokyo, South Korea, U.S

REUTERS/Kim Kyung-HoonSINGAPORE/LONDON, June 28 (Reuters) - The yen was under pressure against most other major currencies on Wednesday, even as Japanese authorities said they could intervene to prop it up, while the Australian dollar dropped after data showed inflation eased in May. The U.S. dollar rose to 144.26 yen on Wednesday, a fresh seven-month high, while the euro climbed to a 15-year high of 157.98 yen. Meanwhile, the Australian dollar fell to a three-week low of $0.6618 after the local consumer price inflation rate slowed to a 13-month low in May. It was last down 0.78% at $0.6634, and the neighbouring New Zealand dollar fell 1.17% to $0.6090, its biggest daily fall in a month. A measure of core inflation in Australia also cooled, in a sign interest rates might not have to rise again in July.

Persons: Kim Kyung, Masato Kanda, Lee Hardman, Jerome Powell, Andrew Bailey, Christine Lagarde, Kazuo Ueda, Ankur Banerjee, Muralikumar Anantharaman, Jamie Freed, Emelia Organizations: National Printing Bureau, Bank of Japan, REUTERS, Hoon, U.S, MUFG, New Zealand, Traders, Bank's, U.S . Federal, Bank of England, Thomson Locations: Tokyo, Japan, Hoon SINGAPORE, LONDON, Australia, Europe, U.S, Singapore

☆ Yen under pressure; Aussie slides as inflation slows
▼ + stars: | 2023-06-28 | by ( Ankur Banerjee | ) www.reuters.com time to read: +4 min

"We are closely watching currency moves with a strong sense of urgency," Japan's top currency diplomat Masato Kanda told reporters on Wednesday. The yen was hovering around the seven-month low of 144.18 per dollar it touched overnight. Against the euro, the yen was pinned near the 15-year low of 157.93 it hit on Tuesday. Against sterling, the Asian currency was hovering around 183.25, just a shade below the 7.5-year low it touched on Tuesday. In the spot market, the onshore yuan opened at 7.2225 per dollar and was changing hands at 7.2285.

Persons: Masato Kanda, Carol Kong, Kong, Rodrigo Catril, Jerome Powell's, Powell, Andrew Bailey, Christine Lagarde, Kazuo Ueda, Ankur Banerjee, Muralikumar Anantharaman, Jamie Freed Organizations: Bank of Japan, Ministry, Finance, Commonwealth Bank of Australia, Federal, Fed, National Australia Bank, European Central Bank, Bank of England, Sterling, Thomson Locations: SINGAPORE, Japan, Sintra , Portugal, Tokyo, Singapore

☆ Morning Bid: Beijing leaves market guessing on yuan
▼ + stars: | 2023-06-28 | by ( ) www.reuters.com time to read: +3 min

The People's Bank of China seems to like being enigmatic, throwing the market a curve ball as it fixed the yuan weaker against the dollar than many expected. Dealers had thought the firmer fix on Tuesday meant Beijing was signalling it wanted the yuan's fall to slow, or even stop. The result has been a drop in the offshore yuan back toward Monday's trough, while the market waits for some clarity on Beijing's intentions. Malaysia is set to be the latest to intervene to support its currency, and Japan sounds closer to pulling the trigger every day. Still, the market is clearly betting the yen will keep falling unless, and until, the Bank of Japan backs away from its yield curve policy.

Persons: Wayne Cole, Ueda, Lagarde, it's, That's, Christine Lagarde, Fed's Jerome Powell, Kazuo Ueda, Andrew Bailey, Edmund Klamann Organizations: People's Bank of, Dealers, Wall, Journal, Ministry of Finance, Bank of Japan, Bank's, OECD, Bank of England, Thomson Locations: Wayne, People's Bank of China, Beijing, Monday's, Washington, China, Asia, Malaysia, Japan, Bank's Sintra, Sintra , Portugal

☆ Asia shares subdued, yen shunned as euro shines
▼ + stars: | 2023-06-28 | by ( Wayne Cole | ) www.reuters.com time to read: +5 min

“The data indicated a firmer pace of residential, inventory, and equipment investment in the second quarter,” wrote analysts at Goldman Sachs. Markets imply a 90% probability of an ECB rate hike to 3.75% in July and a peak around 4.0%. That underpinned the euro at $1.0950, while keeping it near a 15-year peak of 157.97 yen. The dollar had hit a near eight-month top of 144.18 yen, before easing back to 143.96 as Japanese officials again protested against the yen’s weakness. Yet, a rally in the yen looks unlikely while the Bank of Japan maintains its super-easy monetary policy.

Persons: Kim Kyung, Jerome Powell, Christine Lagarde, Kazuo Ueda, ”, Advantest, Goldman Sachs, “, Masato Kanda, Ueda’s, Carol Kong, Brent firmed Organizations: SYDNEY, National Printing Bureau, Bank of Japan, REUTERS, European Central Bank, ECB, ANZ, Wall, Journal, Nvidia, Nikkei, Chip, Tokyo, Federal Reserve, CBA Locations: Japan, Tokyo, Portugal, U.S, Asia, Pacific, Beijing, Washington, China, Europe

☆ Asia shares hesitant, yen slide stokes intervention risk
▼ + stars: | 2023-06-28 | by ( Wayne Cole | ) www.reuters.com time to read: +4 min

Markets imply a 90% probability of a rate hike to 3.75% in July and a peak around 4.0%. The euro responded by climbing to $1.0957, while surging on the low-yielding yen to a 15-year peak of 157.97. The dollar rose to a near eight-month peak of 144.18 yen, before easing back to 143.87 as Japanese officials again protested the weakness in the yen. Yet, a rally in the yen looks unlikely while the Bank of Japan maintains its super-easy monetary policy. “So we now see a higher risk Japanese authorities will step into the market to prop up the JPY.”In commodities, gold steadied at $1,915 an ounce, after finding support at the recent three-month low of $1,909.99.

Persons: Kim Kyung, Jerome Powell, Christine Lagarde, Kazuo Ueda, ”, Goldman Sachs, “, Masato Kanda, Ueda’s, Carol Kong, Brent firmed Organizations: SYDNEY, National Printing Bureau, Bank of Japan, REUTERS, European Central Bank, ECB, ANZ, Japan’s Nikkei, Nasdaq, Wall, Washington, Nvidia, Federal Reserve, CBA Locations: Japan, Tokyo, Portugal, U.S, Asia, Pacific, China, Europe

☆ ECB forum: more tightening to come, top central bank chiefs warn
▼ + stars: | 2023-06-28 | by ( ) www.reuters.com time to read: +2 min

[1/2] The logo of the European Central Bank (ECB) is pictured outside its headquarters in Frankfurt, Germany, April 26, 2018. U.S. Federal Reserve Chairman Jerome Powell did not rule out further hikes at consecutive Fed meetings while European Central Bank President Christine Lagarde confirmed expectations the bank will raise rates in July, saying such a move was "likely". "Policy hasn't been restrictive enough for long enough," Powell told an annual gathering of central bankers hosted by the ECB in the Portuguese mountain resort of Sintra. "We are not seeing enough tangible evidence of the fact that underlying inflation, particularly domestic prices, are stabilising and moving down." While headline inflation was above 3%, the BOJ was keeping monetary policy easy because underlying inflation remained below its 2% target, Ueda said.

Persons: Kai Pfaffenbach, Jerome Powell, Christine Lagarde, Powell, Lagarde, Andrew Bailey, BoE, Bailey, Kazuo Ueda, Ueda, Balazs Koranyi, Francesco Canepa, Mark John, Catherine Evans Organizations: European Central Bank, REUTERS, . Federal, ECB, Bank of England, Bank of Japan, Thomson Locations: Frankfurt, Germany, SINTRA, Portugal, Sintra

☆ FOREX Dollar weaker after data burst, euro rises on ECB comments
▼ + stars: | 2023-06-27 | by ( Chuck Mikolajczak | ) www.reuters.com time to read: +4 min

Additional data on single-family new home sales in May and home prices in April also indicated the housing market has been able to weather rising interest rates from the U.S. Federal Reserve. Morgan Stanley said on Tuesday it was now expecting the Fed to hike its key interest rate by 25 basis points in July, from an earlier estimate of a pause, raising its terminal rate forecast to 5.375%. The euro was up 0.49% to $1.0957 after climbing to $1.0976, the highest since June 22, after comments from ECB officials. Other ECB policymakers weren't anticipating clear evidenceinflation is easing enough that would enable the central bank to pause their interest rate hikes. The euro rose 0.84% against the yen at 157.830.

Persons: Christine Lagarde, Joseph Trevisani, Morgan Stanley, Shunichi Suzuki, Lagarde, Sterling, Jerome Powell, Andrew Bailey, Kazuo Ueda, Yevgeny Prigozhin, Vladimir Putin, Chuck Mikolajczak, David Evans, Alex Richardson Organizations: YORK, European Central Bank, greenback, U.S, Conference Board, U.S . Federal, Bank of Japan, Japan's Finance, ECB, Federal, Bank of England, Thomson Locations: U.S, Russian, Belarus

☆ Japan stocks are roaring back. This rally may be different from the 1990's 'bubble high'
▼ + stars: | 2023-06-27 | by ( Lim Hui Jie | ) www.cnbc.com time to read: +6 min

The bubble burst after the Bank of Japan tightened monetary policy at the start of 1990, triggering the collapse of equity and land prices. But analysts who spoke to CNBC said Japan is not headed for another crash like the one during the bubble. Furthermore, "current high inflation rates in Japan are due to higher import costs on the back of a weaker yen and high commodity prices. What led to Japan's bubble? Nikkei reported in March that share buybacks by Japanese companies was set to reach their highest level in 16 years.

Persons: Kazuhiro NOGI, KAZUHIRO NOGI, Nogi, Dong Chen, Ryota Abe, Abe, Japan's, Shinzo Abe, Chen, SMBC, Warren Buffet's Organizations: Nikkei, Getty, Afp, Bank of Japan, CNBC, Sumitomo Mitsui Banking Corporation, Tokyo Exchange, Billionaire, Global Locations: Tokyo, AFP, Japan, China

☆ Morning Bid: China supports, peak rate haze
▼ + stars: | 2023-06-27 | by ( ) www.reuters.com time to read: +4 min

It made its displeasure at further yuan weakness clear on Tuesday, lifting official daily targets while state banks sold dollars. Even though investors seemed to bat away the bizarre weekend events in Russia, the murky Western interest rate picture continues to hamper European and U.S. stocks. Central bankers meeting at an annual European Central Bank forum in Portugal dissuaded markets from betting on a peak in the interest rate cycle just yet. While those comments are likely more directed at European policymakers, where disinflation is lagging, markets also still expect the Fed to push ahead with at least one more interest rate rise next month. The hawkish rate picture didn't deter demand for two-year Treasury notes at Monday's auction, however, and 2-year yields slipped below 4.70% on Tuesday.

Persons: Mike Dolan, Li Qiang, Hong Kong's, Christine Lagarde, Lagarde, Gita Gopinath, Morgan Stanley, Emelia Sithole Organizations: Federal, Economic, Bank of Japan, European Central Bank, ECB, Conference, University of Michigan's, Dallas Federal, Richmond Fed, Central Bank, Treasury, Walgreens, Reuters, Thomson Locations: U.S, China, Beijing, Tianjin, Shanghai, Russia, Portugal, Sintra

It was the first time the BOJ summary showed a board member explicitly mentioning the need for an early debate of a tweak to YCC, which contrasts with Governor Kazuo Ueda's remarks ruling out any imminent change in policy. Under YCC, the BOJ guides short-term interest rates at -0.1% and the 10-year bond yield around zero as part of efforts to sustainably achieve its 2% inflation target. Some market players bet the central bank could tweak YCC, such as by widening the allowance band set around the 10-year yield target, as early as July to address market distortions caused by its huge bond buying. FRESH YEN WORRIESYCC is also blamed by some analysts for causing an unwelcome yen fall that pushes up raw material import costs. However, Kanda stopped short of saying Japan was ready to take "decisive action" - language he used shortly before Japan stepped into the currency market last year.

Persons: policymaker, Kazuo Ueda's, Ueda, Daisaku Ueno, MItsubishi UFJ, MItsubishi UFJ Morgan Stanley, YCC, Masato Kanda, Kanda, Shunichi Suzuki, Japan's, Leika Kihara, Shri Navaratnam, Sam Holmes Organizations: Bank of Japan, MItsubishi, MItsubishi UFJ Morgan, MItsubishi UFJ Morgan Stanley Securities, Finance, Thomson Locations: TOKYO, Japan, Asia

☆ Bank of Japan member called for early revision of YCC at June meeting
▼ + stars: | 2023-06-26 | by ( Leika Kihara | ) www.reuters.com time to read: +2 min

TOKYO, June 26 (Reuters) - The Bank of Japan should discuss revising its yield curve control (YCC) policy at an early stage, a board member was quoted as saying at a June policy meeting, a summary of opinions at the rate review released on Monday. While the central bank should keep overall monetary policy ultra-loose, it should debate tweaking YCC to improve market function and mitigate its "high cost," the member was quoted as saying. It was the first time the BOJ summary showed a board member explicitly mentioning the need for an early debate of a tweak to YCC. "The Bank should maintain the overall framework of monetary easing for the time being," the member said. At the June meeting, the BOJ maintained ultra-easy monetary policy including its YCC targets - set at -0.1% for short-term interest rates and around 0% for the 10-year bond yield.

Persons: Naoki Tamura, Kazuo Ueda, Leika, Shri Navaratnam, Sam Holmes Organizations: Bank of Japan, Thomson Locations: TOKYO

☆ Dollar steady as investors ponder over global rates, economic outlook
▼ + stars: | 2023-06-26 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

Investors were also on guard after dramatic weekend events in Russia, though reaction in the currency market was subdued as they assessed the implications of the aborted mutiny. The euro was nursing its losses from last week and was last up 0.07% at $1.0902 in Asia trade. Flash Purchasing Managers' Index (PMI) data on Friday showed Britain's economy displayed signs of a slowdown this month but inflation pressures stayed high. Elsewhere, the Japanese yen rose 0.3% to 143.27 per dollar, though was not far from an over seven-month low of 143.87 hit on Friday. The offshore yuan languished near a seven-month low at 7.2162 per dollar.

Persons: Sterling, Bank of England stoked, Carol Kong, Masato Kanda, Vladimir Putin's, CBA's, Rae Wee, Gerry Doyle Organizations: Bank of England, Commonwealth Bank of Australia, PMI, U.S, U.S ., Bank of Japan's, Thomson Locations: SINGAPORE, Russia, Asia, Europe, U.S, Russian, Rostov, Moscow, CBA's Kong, China, Beijing

☆ Japan's top currency diplomat escalates warning against weak yen
▼ + stars: | 2023-06-25 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +1 min

TOKYO, June 26 (Reuters) - Japan's top currency diplomat Masato Kanda said on Monday authorities will respond to any excessive moves in the currency market, warning that recent yen moves were "rapid." When asked about the chance of currency intervention, Kanda told reporters he would not rule out any options. He added that authorities were focusing on the pace of moves in the yen, rather than its levels. The dollar hit a seven-month high against the yen at 143.63 in New York on Friday. Reporting by Tetsushi Kajimoto, writing by Leika Kihara; Editing by Kim Coghill and Jamie FreedOur Standards: The Thomson Reuters Trust Principles.

Persons: Masato Kanda, Kanda, Tetsushi Kajimoto, Leika Kihara, Kim Coghill, Jamie Freed Organizations: Bank of Japan, Thomson Locations: TOKYO, New York

Asia-Pacific markets are set for a mixed open as investors look to inflation data out of Japan and Singapore, as well as flash estimates from the au Jibun bank on Japan's manufacturing and services activity. Japan's core inflation rate in May eased slightly to 3.2% year-on-year, lower than April's 3.4% but still above the BOJ's 2% target. In Australia, futures for the S&P/ASX 200 were at 7,145, lower than the index's last close of 7,195.5. Should the losses hold, Australia is on pace for a third-straight day of losses, after seeing its largest one-day fall in June on Thursday. Mainland Chinese markets are closed Friday for a public holiday.

Organizations: Nikkei, Reuters Locations: Asia, Pacific, Japan, Singapore, Chicago, Osaka, Australia

☆ Dollar rises as hawkish central banks dent risk sentiment, sterling slips
▼ + stars: | 2023-06-23 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

While higher rates are typically supportive of currencies, the risk that they will trigger an economic downturn has pushed some investors to seek safe-haven assets like the U.S. dollar. The Turkish lira slid to a record low of 25.589 against the U.S. dollar, after the Turkey's central bank 650 basis points hike to 15% on Thursday missed expectations. In other currencies, the dollar rose broadly and stood near an over seven-month high against the yen at 142.90. The euro slipped 0.04% to $1.0950, while the U.S. dollar rose 0.05% against a basket of six major peers to 102.44. "Most of the Western central banks are now more hawkish than previously projected," said Tina Teng, market analyst at CMC Markets.

Persons: stoked, Sterling, BoE, Nick Bennenbroek, Jerome Powell, Tina Teng, Rae Wee, Sam Holmes Organizations: Federal Reserve, Bank of England, U.S ., Bank of Japan, U.S, Federal, Fed, Swiss National Bank, CMC Markets, New Zealand, Thomson Locations: SINGAPORE, Wells Fargo

Core consumer inflation has now stayed above the central bank's 2% target for 14 straight months, casting doubt on its view the recent cost-driven inflation will prove temporary. "As the pass-through of rising costs runs its course, core consumer inflation will peak around summer," said Ryosuke Katagi, market economist at Mizuho Securities. BOJ Governor Kazuo Ueda has stressed the need to keep loose policy until inflation is sustainably around 2% and accompanied by wage hikes. He has also said core consumer inflation will slow back below 2% by September or October, though sustained price rises have put that view into some doubt. In its last projections made in April, the BOJ expected core consumer inflation to hit 1.8% in the current fiscal year ending in March 2024.

Persons: Ryosuke, Stefan Angrick, Kazuo Ueda, Leika Kihara, Takahiko Wada, Jacqueline Wong Organizations: Mizuho Securities, Bank of Japan, Reuters, Moody's, Thomson Locations: TOKYO, Japan's, Tokyo

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