News Tech: The yen was pinned near a five-year low against the dollar on Wednesday and lost as traders bet Japan would lag behind an impending wave of global policy tightening as inflation skyrocketed growth in the world. The yen fell through support, now turning resistance, around 115.50 per dollar on Tuesday to hit a five-year low at 116.35. It hovered around 116.05 during a quiet Asian session. The yen also fell through the 200-day moving average to a two-month low of 131.45 per euro, recovering slightly to 131.00 in Asia.
“The 2017 high (dollar/yen) at 118.60 could be the next natural target and cannot be clearly ruled out,” said Terence Wu, FX strategist at OCBC Bank in Singapore at this moment”. Similar dynamics are keeping the euro under pressure as European policymakers are likely to lag behind their UK and US counterparts in tightening. The common currency held near a two-week low against the dollar at $1.1288 and touched a nearly two-year low at 83.32 pence. The risk-sensitive Australian and New Zealand dollars have struggled to continue their expected recovery on fears that Omicron could derail the global recovery.
It hit a more than six-year low against the Swiss franc and a seven-week low against the Aussie, recovering slightly from those levels on Wednesday. “The significantly higher number of COVID-19 cases in the United States (and slightly higher in China) seems to be primarily fueling supply chain concerns and concerns about the economy,” said economist Nomura. inflation is higher in the United States, rather than spurring growth Andrew Ticehurst. This led to a sharp rise in US Treasury yields in the first trading days of the year, and a widening spread for Japanese yields – anchored by the central bank – hurt the yen.
The most recent Kiwi purchases were $0.6803 and AU$0.7228. Both have maintained below resistance around $0.6857 and $0.7270, respectively. The US Dollar Index is capped at 96.269. Minutes of the Federal Reserve’s December meeting, scheduled for release at 19:00 GMT, could underline US policymakers’ renewed sensitivity to inflation and readiness ready for their action. US labor share data on Wednesday and nonfarm payrolls on Friday will also be watched for guidance on the trajectory. Fed Funds futures show traders see interest rates rising in May.
Check the latest news about tech news section for best information.