US Dollar Strengthens on Fed Rate Hike Caution; Yen Eyes Intervention

28 Mar 2024 , 11:24 AM

The US dollar strengthened against major currencies as a Federal Reserve official hinted at no rush to cut rates amidst persistent inflation concerns.

Japan’s yen maintained its position against the dollar, nearing the 152 mark, following suggestions of potential intervention by Japanese monetary authorities.

Federal Reserve Governor Christopher Waller’s remarks during late Wednesday trading emphasized a cautious approach to rate cuts, supporting the dollar index, which remained largely unchanged at 104.41.

Traders await Friday’s US core inflation figures after Tuesday’s positive durable goods orders report boosted the dollar against the yen.

The yen experienced a slight recovery after Japanese officials discussed potential measures to address its weakness, putting markets on alert for intervention signs.

Japan’s currency intervention history in 2022, particularly in September and October, influences current market sentiments.

The Japanese yen was last seen at 151.37 against the dollar. Bank of Japan’s March meeting revealed policy divisions regarding the country’s readiness to exit ultra-easy monetary policy.

In other currencies, the euro declined by 0.11% to $1.0814, while sterling fell by 0.17% to $1.2616. Bitcoin saw a 1.14% increase to $69,648.86 in the cryptocurrency market.

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