Yen Surges to 150 Per Dollar

29 Nov 2024 , 09:10 AM

After Tokyo’s faster-than-expected inflation bolstered expectations for a Bank of Japan interest rate hike next month, the yen surged up to 1% to reach a six-week high of 150 per dollar on Friday.

Due to the U.S. Thanksgiving break, the dollar declined against the majority of its major rivals, while sterling reached its best level since November 20.

After recovering from a slight decline in the previous session, the euro ended the day with minimal change, edging back towards Wednesday’s one-week high.

Thursday’s German consumer pricing data was flat, even though a second straight gain was anticipated. Budget disputes in France and Dovish remarks made by a European Central Bank official overnight

Even though the dollar has been struggling lately after hitting a two-year high versus a basket of major competitors a week ago, it is still expected to gain more than 2% in November after making a more than 3% jump last month.

Donald Trump’s overwhelming election victory on November 5 has fuelled expectations of significant fiscal spending, higher tariffs, and stricter borders—all of which analysts view as inflationary.

The dollar index is expected to drop 1.5% this week. With gains of almost 3%, the yen has staged a significant resurgence.

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