Yen Recovers as BOJ Remains Optimistic Amid Global Market Changes
The yen saw a partial recovery on Friday following the Bank of Japan's optimistic stance on economic growth and cautious approach to policy tightening. The dollar faced its own issues with markets anticipating more rapid U.S. rate cuts. The euro and pound gained, while China's central bank left lending rates unchanged.
The yen recovered some ground on Friday after the Bank of Japan (BOJ) displayed optimism about economic growth and indicated it would proceed cautiously with further policy tightening. Concurrently, the dollar grappled with market expectations of swifter U.S. rate cuts.
This week has been challenging for the yen, as the euro surged by 2.2% to 159.46, prompting speculators to cash in on recent long yen positions. The euro also rose to $1.1160, aiming for its August peak of $1.1201.
Meanwhile, the dollar remained steady at 142.45 yen, having fallen from an overnight high of 143.95. The BOJ, as anticipated, kept its overnight call rate target at 0.25%, citing a moderate economic recovery and moderated inflation.
(With inputs from agencies.)
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