2023-11-13 13:14:42
The dollar rose to its highest level in more than a year against the Japanese yen on Monday, supported by declining expectations that the US Federal Reserve will cut interest rates next year.
Japanese Finance Minister Shunichi Suzuki said that the government will continue to monitor the currency market and respond appropriately. These statements had little impact on the yen, which has fallen approximately 14 percent against the dollar this year.
The pound sterling rose after British Prime Minister Rishi Sunak reshuffled his cabinet.
Traders in global currency markets are awaiting the release of the latest US inflation data, on Tuesday, to find out whether interest rates are likely to be lowered next year.
The dollar rose today, Monday, to 151.88 yen, reaching its highest level since October 2022. In the latest trading, it rose 0.15 percent after a 1.4 percent increase last week, in the largest weekly jump against the yen in three months.
Federal Reserve policymakers, including Chairman Jerome Powell, signaled last week that the battle against inflation may not be over yet, lowering bets that interest rates will fall and so the dollar and short-term Treasury yields rose.
The dollar index, which measures the value of the US currency against other major currencies, stabilized at about 150.80 points, holding on to most of last week’s gains.
The market had little reaction to the news issued late on Friday, which reported that the credit rating agency Moody’s lowered its outlook for US credit from stable to negative.
The euro rose slightly to $1.0684, and the British pound rose 0.2 percent to $1.2254.
The British currency increased 0.2 percent to about 87.24 pence against the euro after news of a ministerial reshuffle in the British government.
British Prime Minister Rishi Sunak returned his former counterpart David Cameron to the government as Foreign Minister and dismissed Home Secretary Suella Braverman in a cabinet reshuffle.
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