SPXT - Yen Tumbles To New Low On BOJ Comments

2024-02-08 07:15:00 ET

Summary

• The dollar is narrowly mixed against most of the G10 currencies as it continues to consolidate its recent gains.
• Japan, the world's third-largest economy, has run trade deficits for the past three years.
• China remains in deflation.

Overview

The dollar is narrowly mixed against most of the G10 currencies as it continues to consolidate its recent gains. The yen is the notable exception, and it was sold today, not in response to developments in the US Treasury market, a frequent driver, but in response to comments by a deputy governor of the central bank, suggesting a rate adjustment would not necessarily signal the start of a tightening cycle, which some economists expected.

Emerging market currencies are also mostly narrowly mixed. Central European currencies are firmer, even the Czech koruna, ahead of what is expected to be the second cut in the cycle that began in December. More deflation readings from China did the yuan no favors, but the yen's weakness may have weighed on it, ahead of the long holiday celebration. India's central bank stood pat, and the rupee is flat. The Mexican peso is little changed ahead of the CPI report and the central bank meeting later today....

For further details see: