Most Asian FX creeped up a little bit in holiday trade, marking a positive start to the new year as investors believe there will be slower interest rate hikes by the U.S. Federal Reserve and a weaker dollar.
The Japanese Yen gained more than last week, rising 0.1% to 130.96 - its strongest level against the dollar in five months.
Still, the Japanese economy is set for increased uphill with high inflation and uncertainty over the COVID-19 pandemic continuing at growth.
Still, the dollar weakened in recent months after data showed that U.S. inflation has likely peaked, which is expected to invite a slower pace of rate hikes by the Fed. The central bank already hiked rates by a relatively smaller 50 basis points in December and is forecast to raise rates by 25 bps in February.
Comments