Dollar weakens in early trade

11 May 2023 , 08:26 AM

On Thursday, the dollar lost ground versus the yen for a second day in a row.

After headline CPI came in below 5% for the first time in two years, the 10-year Treasury yield, which the dollar-yen pair frequently tracks, fell to 3.4252% in Tokyo trading, extending an overnight loss of 8 basis points.

The American dollar decreased 0.26% to trade at 134.025 yen in the Asian morning after falling as low as 133.895 earlier.

Money market traders currently give a 5% chance of a June quarter-point hike and a 95% chance of a pause. By the end of this year, prices for three-quarter point cutbacks are set.

The Bank of Japan’s policymakers, meanwhile, believed that the nation was making strides towards consistently attaining its inflation target, according to meeting minutes from April.

However, they also concurred that despite uncertainty about the sustainability of wage rise and the outlook for the global economy, ultra-easy stimulus policies must be maintained.

The euro moved back to the centre of its trading range during the previous month as it increased 0.05% to $1.09885.

Inching closer to Wednesday’s one-year high of $1.2679, the value of the pound plunged up 0.04% to $1.2631. Later on Thursday, when the Bank of England announces its policy decision, a rate increase for the 12th consecutive time is expected.

The Australian dollar gained 0.08% elsewhere to $0.6784, regaining ground on Wednesday’s 2-1/2-month peak of $0.6818.

After reaching a nearly three-month high of $0.6384, the New Zealand kiwi dollar increased by 0.09% to $0.63735.

Early gains waned after statistics from China, a major trading partner, revealed that consumer prices were increasing more slowly than expected, further demonstrating the lackluster domestic demand.

After falling as low as $26,842 overnight for the first time since March, the most valuable cryptocurrency, bitcoin, was barely changed at roughly $27,562.

For feedback and suggestions, write to us at [e-mail]