The yen rose in Asian trade on Thursday against a basket of major rivals, resuming gains against the US dollar and approaching a two-week high as the greenback suffers.
The dollar skidded to three-year lows on renewed concerns about US financial and monetary stability after renewed attacks by President Trump on Fed Chair Jerome Powell.
The latest Bank of Japan’s policy meeting also tanked the odds of an interest rate hike in July, with traders now awaiting more data to gather clues.
The Price
The USD/JPY price fell 0.4% today to 144.57, with a session-high at 145.26.
The yen lost 0.2% on Wednesday against the dollar after a 0.85% surge in the previous session away from six-week lows at 148.03.
The Dollar
The dollar index fell 0.45% on Thursday on track for the fourth straight loss, plumbing three-year lows at 97.27 against a basket of major rivals.
The decline comes as the US dollar faces accelerating selloff waves due to concerns about financial stability.
Trump Attacks Powell
Trump once again criticized Powell for refusing to cut interest rates, and asserting Powell will leave his position soon.
Powell told the Senate of the need to be cautious with monetary policies, as Trump’s tariffs represent a risk to inflation.
The Wall Street Journal reports that Trump is considering choosing and announcing his successor by September or October as a way to undermine him.
Japanese Rates
The odds of a Bank of Japan’s 0.25% interest rate hike at the July meeting stood at just 40%.
Traders now await important Tokyo data on inflation, unemployment, and retail sales to gather additional clues.
