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21/06/24
114
USD Attains High Level Seen Several Weeks Ago
On June 21, the USD rose to a new high level in 8 weeks against JPY and was close to its highest level in 5 weeks against GBP. The USD index measuring the currency against six major peers rose by 0.41 percent overnight after declining over the week as Switzerland’s apex bank delivered a second rate cut and the Bank of England gave a clue on potential cuts in August.
The JPY is still on the downside following a decision by Japan’s apex bank last week to suspend a reduction in bond buying stimulus until its meeting next month. The Bank of Japan on the order of the finance ministry spent some 9.8 trillion yen to help JPY come down from its highest level in 34 years of 160.245 per USD, attained on April 29.
Due to the move, the United States Treasury has included Japan in its list of countries being monitored for possible labelling as a currency manipulator on Thursday. The list includes China and more.
On Friday, Japan’s top currency diplomat Masato Kanda noted that the Japanese authorities are ready to ensure “resolute” action against “speculative, excessive volatility.” At press time, USD/JPY was trading at 158.976, representing a 0.05 percent uptick following a move to a high level of 159.12.
Further, USD/CHF was trading at 0.89229, representing a 0.10 percent uptick, after recording a 0.78 percent increase overnight. The U.S. Dollar Index was at 105.79, representing a 0.19 percent increase, while GBP/USD was trading at 1.2634, representing a 0.18 percent decline. Similarly, EUR/USD was trading at 1.06827, representing a 0.18 percent decline.
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