Dollar sags versus the yen after Japan warning in early trade

31 May 2023 , 10:12 AM

Following a meeting of Japanese authorities to discuss their currency on Tuesday, the dollar fell from a six-month high and remained below the critical 140 yen mark on Wednesday.

The Australian dollar experienced a rollercoaster ride after rising on hot local inflation data only to be driven lower by further indications of a slowdown in China, a significant trading partner, moments later. In off-shore trading, the Chinese yuan plunged to a six-month low.

The Australian dollar was recently trading down 0.15% at $0.6507, returning to last week’s 6-and-a-half-month low of $0.6490. At its lowest point, it dropped as much as 0.38% after rising as high as 0.33%.

The New Zealand dollar dropped as much as 0.5% to $0.60125, its lowest level in 6 1/2 months.

The American dollar increased to 7.1171 against the Chinese yuan for the first time since November 30 by as much as 0.38%.

Following a meeting of the finance ministry, central bank, and financial watchdog of the nation on Tuesday, Japan’s top currency diplomat stated that officials ‘will closely watch currency market moves and respond appropriately as needed.’ The dollar was little changed at 139.82 yen at the time.

The dollar had climbed to its highest level since November 23 earlier that day, reaching 140.93.

In other news, the euro lost some of its Tuesday’s 0.28% gain, falling by 0.22% to $1.0711.

After increasing by 0.44% the day before, the value of the pound fell by 0.14% to $1.2395.

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