Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Editor
Amelia Kylian
Sep 25, 2023 1:18AM ET
I want to be rich
0
0
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Extended Sale! Save on premium data with Claim 60% OFF
Yen Drops and Dollar Rises as Central Banks Maintain Stimulus Measures
Published Sep 22, 2023 09:06AM ET
Updated Sep 22, 2023 09:06AM ET
© Reuters.
On Friday, the yen fell sharply against the dollar, trading at 148.31, following the Bank of Japan's decision to keep interest rates in negative territory. This move indicates that the bank is not in a hurry to wind down its large-scale stimulus program. Concurrently, the dollar rose by 0.2%, marking its 10th successive weekly gain, bolstered by a decline in the euro due to poor economic data from the Eurozone.
The Federal Reserve (Fed) has maintained its steady approach to interest rates, although there is speculation about a possible rate increase this year, extending into 2024. According to the CME FedWatch tool, market sentiment indicates a 45% chance of another rate hike this year and a 44% likelihood of rate cuts by early 2024.
Eren Osman, managing director of wealth management at Arbuthnot Latham, stated that the focus of the market has primarily been on the Fed's actions. "The massive week for central banks has really been all about the Fed. That is the focus of the market and that's what's driving the dollar right now," said Osman. He added that if U.S. economic data continues to improve, it would put an "upside risk" on interest rates, increasing the need for a soft landing.
Meanwhile, oil prices remained above $90 per barrel but were set for a slight weekly decrease after seeing more than a 10% rise over the past three weeks due to concerns over tight global supply. The MSCI's index of global equities was slightly weaker and down about 2.6% for the week so far.
Benchmark 10-year U.S. Treasury yields reached a 16-year high of 4.508%, trading at 4.478% in Europe, while 30-year yields reached their highest in twelve years, trading at 4.55%, up slightly on the day. ING Bank attributed the rise in yields to a re-evaluation of the Fed's higher-for-longer policy, which has created challenges for risk assets such as equities, credit, and emerging markets, but has supported the dollar.
The potential for a U.S. government shutdown in just 10 days was also being closely watched by markets. Amid these developments, silver prices experienced a slight dip following the Federal Reserve's meeting, but the market sentiment suggests anticipation for a forthcoming U.S. rate moderation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Related Articles
Comments (1)
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.