Yen Goes Sky‑High – First Time in a Year!
The Japanese yen has rocketed to its strongest point in more than twelve months. Investors glanced at the dollar and found the greenback a bit weak, thanks to whispers that the U.S. Federal Reserve might slash rates by a generous half‑point.
Why the Dollar Got a Little Slippery
- Fed Speculation: With U.S. job numbers cooling, traders are betting on a rate cut. A 50‑basis‑point drop would shrink the dollar’s appeal worldwide.
- Retail Sales Preview: The Fed’s upcoming meeting could shake up forex markets. If July’s retail sales are stronger than expected, the dollar might bounce back and curb the yen’s climb.
Yen’s Momentum: Inside Japan’s Numbers
The yen’s fate now depends on two key Japanese reports:
- Core Inflation: Analysts anticipate August’s core inflation to tick up to 2.8% from July’s 2.7%. A higher figure could nudge Japanese policy hawks.
- Bank of Japan’s Rate Decision: The bank may keep its short‑term policy rate steady this week, but keeping an eye on potential hikes keeps the yen strong.
Basically, the yen is riding a rollercoaster built on Fed fears, U.S. consumer data, and Japan’s own inflation numbers. If everything lines up, the yen could keep charging ahead.
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