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View all search resultsCurrency markets treaded water in cautious trading on Thursday as investors weighed a fresh surge in oil prices and global bond yields, while the yen's powerful rally also took a breather ahead of United States PPI and inflation readings.
The Japanese yen climbed to fresh seven-month highs against the US dollar on Tuesday, as traders continued to unwind short positions amid growing bets of a Bank of Japan interest-rate hike while the dollar was subdued ahead of CPI data this week.
The dollar held steady near a two-week high on Monday as markets ramped up bets on a rate hike after hawkish remarks by Federal Reserve Chair Kevin Warsh, while the yen slipped back through the closely watched 160-per-dollar level.
The dollar nudged a little higher in Asian trade on Wednesday, receiving limited additional strength after renewed attacks on shipping in critical waterways in the Middle East, as currency markets anxiously awaited the release of inflation data later in the global day.
The yen slumped to levels not seen since 1986 on Tuesday, stoking worries that direct intervention from Tokyo was around the corner, while the dollar backed away from 13-month highs ahead of jobs data that could influence the US rate outlook.
The rupiah slid to a new record low of Rp 18,000 per United States dollar on Thursday, extending its losses this year to more than 7 percent and making it Asia’s worst-performing currency as rising oil prices and deteriorating trade dynamics rattled investors.
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