Currency Fluctuations Keep Markets on Edge
The Japanese yen briefly hit six-week highs against the dollar before retreating. The euro remained stable ahead of the European Central Bank's meeting, while the British pound traded near one-year highs. Interest rate speculations and possible market interventions by Japan influenced these movements.
![Currency Fluctuations Keep Markets on Edge](https://devdiscourse.blob.core.windows.net/aiimagegallery/18_07_2024_11_38_29_8937742.png)
The Japanese yen grazed six-week highs before retreating against the dollar on Thursday, keeping traders alert to any signs of official buying. Meanwhile, the euro remained steady ahead of a crucial European Central Bank meeting, where no change to monetary policy is expected.
Joe Capurso of Commonwealth Bank of Australia believes the ECB will focus on future interest rate cuts being dependent on declines in inflation and wage growth. The euro hovered around $1.09325 with market expectations leaning toward another rate cut within the year.
Sterling, meanwhile, hit one-year highs but dipped below $1.30 after British wage growth data surprised markets, reducing chances of an August rate cut. The yen strengthened by 0.53% overnight, influenced by possible intervention by the Bank of Japan and comments from U.S. presidential candidate Donald Trump, who criticized the dollar's strength.
(With inputs from agencies.)