Connect with us

Hi, what are you looking for?

Alive Business PlanAlive Business Plan

Economy

Forex Exchange: Dollar Strengthens on Global Growth Concerns

Forex Exchange: Dollar Strengthens on Global Growth Concerns

The dollar forex exchange reached a six-month high amid China and global growth anxieties. Meanwhile, the yen hovers near a 10-month low, raising concerns in Japan.

The dollar retained its strong position on Wednesday, hovering near a six-month peak, as concerns over China’s economic slowdown and global growth continued to affect risk sentiment. Meanwhile, the yen remained close to a 10-month low, prompting Japan’s top currency diplomat to issue a stern warning.

Yen Forex Patterns Concerns

The yen Forex line trading was at 147.66 per dollar in early Asian hours. The currency stood just below 147.8, a level not seen since November 4th. This has raised alarms, as the currency has remained around the crucial 145 per dollar mark for weeks, leading to suspicions of potential intervention.

Japan’s Response

Masato Kanda, Japan’s top currency diplomat and vice-minister of finance for international affairs, emphasized the country’s readiness to take action if speculative moves in the yen persist.

Last year, Japan intervened in currency markets in September when the dollar surpassed 145 yen. This intervention by the Ministry of Finance aimed to weaken the yen and bring the pair back to around 140 yen.

Market Reaction

Traders and analysts have noted the increased focus on verbal intervention as a response to the yen’s weakening. Christopher Wong, a currency strategist at OCBC in Singapore, commented that officials are likely to engage in more verbal intervention if they perceive one-sided and excessive yen movements.

Forex Chart Patterns

In contrast, the dollar continued to strengthen against a basket of currencies, rising 0.067 forex pips to 104.80. This was close to the six-month high of 104.90 achieved overnight. Concerns over slowing global growth, triggered by economic data from China and Europe, prompted investors to seek refuge in the dollar.

Global Economic Worries

Data from both the eurozone and Britain showed a decline in business activity, while China’s services activity expanded at its slowest pace in eight months in August.

Fed’s Perspective

Federal Reserve Governor Christopher Waller indicated that the latest forex day trading data provided room for the central bank to assess the need for further interest rate hikes. Currently, markets are pricing in a 93.00% chance of the Fed maintaining rates later this month. Besides, there is a 55.00% chance of no more hikes this year, according to CME FedWatch.

Other Currency Forex Patterns

The Australian dollar eased by 0.17% to $0.637 following a 1.30% decline on Tuesday. The Reserve Bank of Australia’s decision to keep rates steady was an antecedent of the downturn. The Kiwi also fell, dropping 0.31% to $0.587.

While the dollar forex exchange maintains its strength amidst global growth concerns, the yen’s slide remains a point of worry for Japan, potentially leading to further verbal intervention to address the situation.

The post Forex Exchange: Dollar Strengthens on Global Growth Concerns appeared first on FinanceBrokerage.

Enter Your Information Below To Receive Latest News, And Articles.



    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    Donald Trump’s defense attorneys Wednesday asked the federal judge handling the government’s classified documents case to allow the former president and his legal team...

    Latest News

    Decrying what he saw as the liberal bias of ChatGPT, Elon Musk earlier this year announced plans to create an artificial intelligence chatbot of...

    Latest News

    One of the newest judges on the Fulton County Superior Court bench, Scott McAfee, has been assigned the sprawling racketeering case that charges former...

    Latest News

    LIVE OAK, Fla. — President Biden traveled to Florida on Saturday to survey the damage caused by Hurricane Idalia, part of a storm response...



    Disclaimer: alivebusinessplan.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 alivebusinessplan.com