Dollar Strength Eases, Yen Finds Relief

19 Nov 2024 , 10:49 AM

Tuesday’s drop in the U.S. currency, which saw profit-taking following a spectacular run that saw it reach a one-year high, gave the yen some much-needed reprieve as it remained steady on the stronger side of 155 per dollar.

The yen recovered from its decline in the previous session when Bank of Japan Governor Kazuo Ueda stuck to his script and gave no indications that a rate hike might occur in December. It recently nudged 0.2% higher to 154.40 per dollar.

Traders are on high alert for any intervention as the yen has dropped over 7% since October and last week broke through the 156 per dollar mark for the first time since July.

As it moved farther away from last week’s one-year peak against a basket of currencies, the dollar was losing ground in the overall market.

After dropping 0.4% overnight, the dollar index added 0.04% to 106.26, while sterling held steady at $1.2676.

The dollar has increased by more than 2% so far this month due to a decrease in expectations regarding the size of rate cuts by the Federal Reserve and the belief that President-elect Donald Trump’s praised policies of reduced immigration, tariffs, and debt-funded tax cuts will cause inflation in the American economy.

In a similar vein, the euro recovered from its one-year low last week and last traded at $1.0590.

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