Japan's yen scaled a six-week high on Thursday, spurring speculation of an official push, while the dollar nursed broad losses as markets prepared for U.S. rate cuts in a few months.
Japan's yen scaled a six-week high on Thursday, spurring speculation of an official push, while the dollar nursed broad losses as markets prepared for U.S. rate cuts in a few months.
"Many traders and Japanese investors, after intervention, were looking to reload on their trades," said National Australia Bank strategist Rodrigo Catril in Sydney.
Interest rate markets are pricing more than 60 basis points of U.S. interest rate cuts this year and some 20 basis points of hikes in Japan, narrowing the wide rates gap that had encouraged investors taking on large short positions in the yen.
So far this year the yen is the worst-performing G10 currency on the dollar, losing more than 9%, while the yuan is down about 2.2%.
Persons:
Rodrigo Catril, Donald Trump —
Organizations:
. Bank of, National Australia Bank, Bloomberg Businessweek
Locations:
Asia, . Bank of Japan, Sydney, Japan, Beijing
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