Yen Strengthens Amid Market Shifts and BOJ Policy Anticipation
The yen gained traction ahead of the Bank of Japan's policy meeting, supported by unwinding carry trades and a rotation out of growth stocks. Meanwhile, the Australian and New Zealand dollars struggled due to weak commodity prices. Traders are watching U.S. growth figures and speculating on potential BOJ rate hikes.
![Yen Strengthens Amid Market Shifts and BOJ Policy Anticipation](https://devdiscourse.blob.core.windows.net/aiimagegallery/18_07_2024_11_38_29_8937742.png)
The yen gained traction on Thursday, supported by the unwinding of carry trades and a rotation out of megacap growth stocks, ahead of the Bank of Japan's policy meeting next week.
Meanwhile, the Australian and New Zealand dollars continued to struggle due to weak commodity prices. The euro also faced downturns related to a poor PMI reading, while the dollar held its ground, with U.S. growth figures to be released later in the day.
Traders speculated on the possibility of a Bank of Japan rate hike and a reduction in bond purchases, leading to an intraday high for the yen of 152.835 per dollar, its strongest in 2-1/2 months. Market analysts pointed to deteriorating risk sentiment and an unwind in various trades as contributing factors to the yen's rise.
(With inputs from agencies.)