Written by Lei Wee
Singapore, March 12 (Reuters) – The yen headed for its biggest daily slide against the dollar in a month on Tuesday as the latest comments from Japanese government officials weakened expectations that a policy change by the Bank of Japan is imminent as early as next week. Ta.
Elsewhere, the dollar held mostly steady ahead of key U.S. inflation indicators released later in the day that will provide further clarity on when the Federal Reserve will begin its rate-cutting cycle this year. .
circle JPY=EBS The currency recently fell 0.4% to 147.47 against the dollar, and fell by the same amount against the British pound after rising to a one-month high of 188.01. Pound Yen=EBS early in the session.
”There is more uncertainty now and we expect a bit more volatility before the BOJ meeting,” said Alvin Tan, head of Asian currency strategy at RBC Capital Markets.
“I think it is still undecided whether we will move in March or not.”
1-week implied volatility of USD/JPY JPYSWO=The index, which measures expectations for price movements in currency pairs, rose to 12.115% on Tuesday, its highest level since December.
Focus on US inflation
In the broader market, the euro Euro=EBS It last bought at $1.0936, retreating from its nearly two-month high last week.
sterling GBP=D3 It rose 0.04% to $1.2816, but was far from Friday’s high in more than seven months.
Currency movements other than the yen were subdued, and the dollar ended its recent decline ahead of the release of the U.S. inflation report later on Tuesday.
Core consumer prices are expected to rise 0.3% on a monthly basis in February, but, as was the case last year, investors will be watching closely for any surprises. Januarywhich could derail the expected pace of Fed interest rate cuts. fed watch
“If we get 0.2%, I think the market will return to the scent of a potential Fed rate cut on May 1st. If we get 0.4%, I think the market will cast some doubt on a rate cut.” as early as June,” said Ray Attrill, National Australia Bank’s head of foreign exchange strategy.
“In that sense, I think it is correct to think that the market is highly sensitive to anything other than 0.3% core print.”
australian dollar Australian dollar=D3 The New Zealand dollar fell 0.04% to $0.6612. NZD=D3 The stock fell 0.02% to $0.6169.
dollar index = USD It hit a two-month low of 102.33 last week, rising 0.04% to 102.83.
The decline in the US dollar comes on the back of growing expectations that the Fed could start cutting interest rates by June, especially following comments from the Fed chairman. Jerome Powell Last week solidified that hope.
job data The report released on Friday also showed that fundamental labor market conditions in the world’s largest economy are softening as the unemployment rate rose to a two-year high of 3.9% in February. showed that.
Bitcoin in cryptocurrency BTC= The stock fell 0.78% to $71,587, but it is still within reach. Best ever The one set in the previous session.
ether ETH= The highest price was $4,093.70, the highest since 2021, but since then, some of that increase has been pared down to $4,004.30.
world exchange rates https://tmsnrt.rs/2RBWI5E
(Reporting by Rae Wee; Editing by Jamie Freed)
((Rae.Wee@thomsonreuters.com;))
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