Global Currencies Pivot: Yen Rebounds, Dollar Holds Strong

The yen recovered from a recent slump against the U.S. dollar following Japan's wholesale inflation data, suggesting a possible Bank of Japan rate hike. The U.S. dollar remained firm, with market anticipation surrounding U.S. inflation data impacting Federal Reserve interest rate decisions. Antipodean currencies and other global currencies showed varied movements.

The Japanese yen rebounded from a two-week low against the U.S. dollar as recent data indicated a sharp rise in Japan's wholesale inflation. This trend supports the anticipated interest-rate hike by the Bank of Japan in its upcoming meeting. Meanwhile, the dollar held steady against other major currencies, with traders eyeing an important U.S. inflation report that could affect Federal Reserve interest-rate cut expectations.

The Australian dollar remained near a four-month low after the Reserve Bank of Australia's dovish policy outlook. The kiwi also slipped to its lowest in over a year. Market attention is fixed on China's Central Economic Work Conference, where economic support measures to boost the Chinese economy have been discussed, impacting the Antipodean currencies earlier this week.

In the broader foreign exchange landscape, the dollar maintained its position with slight fluctuations among the euro, sterling, and other currencies ahead of monetary policy decisions by major central banks, including the European Central Bank and the Swiss National Bank. This varied currency performance reflects the nuanced global economic environment and shifting market expectations.

(With inputs from agencies.)