

Dollar steady meanwhile yen wobbles as traders assess rate cut bets and carry trades

The dollar held its ground while the yen retreated from a seven-month peak. Currency markets stabilised after a turbulent start to the week driven by recession fears and the unwinding of carry trades. The yen dropped, moving away from its high reached. Despite this dip, the yen has risen and is well above the 38-year low. Timely interventions from Tokyo in early July and a hawkish shift from the Bank of Japan last week prompted investors to exit carry trades, where they borrowed yen at low rates to invest in dollar-denominated assets for higher returns. Market volatility increased with a weaker-than-expected U.S. job report and disappointing earnings from major tech firms, triggering a global sell-off of riskier assets amid fears of a U.S. recession. Read more for the latest updates about the Yen’s recent movements here.

why yen dipping

Disclaimer:

Traders should closely monitor upcoming economic reports and Fed communications for more clues on the future direction of US monetary policy, while keeping to a risk management plan in navigating the markets.

Publication date:

2024-08-12 09:03:33 (GMT)

The terms and conditions of use set out below (referred to as "FX Blue's Terms"), form a contractual agreement governing FX Blue's relationship with you in relation to your use of this Website (“Agreement”) and you agree to be legally bound by FX Blue's Terms just as if you had signed this Agreement. By using this Website and any Information, you are agreeing to comply with and be bound by FX Blue's Terms, including any revisions that may be made to FX Blue's Terms from time to time. FX Blue reserves the right, in FX Blue's sole discretion, to change, modify, add or remove portions of FX Blue's Terms at any time by posting the revisions on the Website. You should check FX Blue's Terms periodically for changes as by using the Website after FX Blue posts any changes to FX Blue's Terms, you are agreeing to accept those changes, whether or not you have reviewed them, and you waive any right you may have to receive individualised notice of such changes. FX Blue's Terms may be supplemented by additional terms and conditions pertaining to specific content and activities. You agree and understand that such additional terms and conditions are hereby incorporated by reference to FX Blue's Terms. Your continued use of the Website means that you accept any new or modified FX Blue Terms.