May 08, 2024 (MENAFN via COMTEX) --
(MENAFN) On Wednesday, the dollar exhibited a robust performance, making up for recent losses attributed to renewed speculation surrounding potential interest rate cuts by the US Federal Reserve. Meanwhile, the yen experienced its third consecutive day of decline, sparking concerns among investors about potential intervention by Tokyo authorities.
In European markets, the Swedish currency faced downward pressure following a decision by the central bank to reduce interest rates, citing an anticipation of two further cuts within the year. Conversely, the pound sterling remained stagnant within negative territory ahead of the upcoming Bank of England meeting scheduled for Thursday.
Attention is particularly drawn to the yen, which continued its decline, prompting Japanese officials to issue stern warnings regarding the detrimental effects of the currency's weakness on the economy. Traders observed significant efforts from Japanese authorities, estimated at around $60 billion, aimed at bolstering the currency following its recent plunge to a 34-year low against the dollar, reaching approximately 160 yen.
Analysts cautioned that any intervention from Tokyo would likely offer only temporary support to the yen, given the substantial interest rate differential between the United States and Japan. In the latest trading session, the dollar saw a 0.45 percent increase against the Japanese currency, reaching 155.375 yen, thereby distancing itself from the recent low of 151.86 yen recorded amid uncertainties surrounding government intervention.
Furthermore, the dollar index, a measure of the US currency's performance against a basket of six major currencies, experienced a 0.18 percent rise to 105.6, surpassing the one-month low observed the previous week.
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COMTEX_452084682/2604/2024-05-08T18:09:44
