NEW YORK (Reuters) – The U.S. dollar was little moved but strengthened against the yen as expectations of wide interest rate differentials persisted, even after fresh warnings from Japanese officials about wanting to support their currency.
Currency diplomat Masato Kanda said authorities may be forced to act against disorderly and speculative movements in the exchange rate, signaling that the Bank of Japan is ready to intervene, after two alleged interventions worth almost $60 billion last year. week.
At 5.20pm, the greenback strengthened 0.3% to 154.36 against the yen, after a fall of more than 3% last week, the largest weekly percentage loss since the beginning of December 2022.
The dollar index trades essentially unchanged at 105.08, while the euro advances by 0.08% to 1.078 dollars.
The Australian dollar lost ground against its US counterpart after the Reserve Bank of Australia (RBA) kept rates steady and refrained from taking a ‘hawkish’ stance, although governor Michele Bullock warned that inflation risks were to the upside, signaling that monetary policy is unlikely to be eased anytime soon.
The Australian dollar fell by 0.14% against the US currency to 0.6615 dollars.
The pound weakened 0.1% to $1.2549, ahead of the Bank of England’s policy announcement on Thursday, in which interest rates are expected to be kept unchanged.
(Translated by Camilla Borri, editing Valentina Consiglio)
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