From BigGo Finance · BigGo Finance · · 1m 10s
Dollar-Yen Softens as Fed Hesitates on Rate Hikes
Fed Chair Warsh's cautious remarks cool year-end rate hike expectations, pushing dollar-yen to 157.80.
In brief
Fed Chair Warsh's cautious remarks cool year-end rate hike expectations, pushing dollar-yen to 157.80. Fed Chair Warsh's lack of hawkish signals reduced year-end rate hike expectations, softening dollar-yen to 157.80. Originally reported by BigGo Finance.
Dollar-Yen Softens
Dollar-yen pair softened to 157.80 level in foreign exchange markets on the 16th.
Fed Chair Warsh's Cautious Remarks
Fed Chair Warsh refrained from signaling a hawkish tilt toward additional rate hikes, prompting a pullback in expectations for further tightening this year.
Market Reaction to Warsh
Dollar selling gained momentum alongside a decline in U.S. long-term yields as Warsh's remarks circulated.
Tokyo Trading Activity
The pair climbed to 158.18 before sliding to 157.79 in Tokyo trading.
Finance Minister's Commitment
Finance Minister Satsuki Katayama expressed her commitment to maintaining orderly currency markets.
“work toward maintaining orderly currency markets”
BOJ Signals Rate Hikes
BOJ Governor Kazuo Ueda signaled a continuation of rate hikes amid inflation concerns.
“underlying inflation exceeding 2% cannot be tolerated”
Market Wait-and-See Phase
Market participants increasingly view the current period as a wait-and-see phase on monetary policy in both Japan and the United States.
The bottom line
Fed Chair Warsh's lack of hawkish signals reduced year-end rate hike expectations, softening dollar-yen to 157.80.
