The greenback is soaring today against the yen as a lingering effect of the Abenomics from the recent Japanese election. On the other, the pound is looking to run bullishly today as stronger than expected GDP raises a new hope for the next interest rate hike.
The dollar’s increase is considerably high, reaching massive three and a half highs; the market is also expecting that the Fed will continue with its hawkish direction towards the next interest rate hike due to the stellar dollar performance.
The pair continues to remain on the dollar’s side, extending some gains from yesterday, we can see that the dollar managed to climb by 114.245 yen. The price is remarkable considering that it is the first time that the dollar reached such figures, the last time that the currency bullishly runs like that was last July.
Yen’s performance continues to remain soft due to the immense pressure from the past weeks due to the election, and Prime Minister Shizon Abe winning for another term. One of the main reasons why the yen is dipping largely these past few days is because of the Abenomics which favors “ultra-loose monetary policy.
RBC Capital Market’s head of currency strategy Adam Cole noted that “Anything that reduces the probability of Yellen being reappointed necessarily means the Fed looks more hawkish than it would otherwise. The general perception is that there’s no one more dovish than Yellen,”
On the other hand, the Australian dollar stumbles against the greenback as a massive lackluster performance from Q3 consumer price index; most of the tallied figures were behind most forecasts and market expectations. The Australian dollar was losing against the greenback by a massive 1%, dipping to a three and a half month low of $0.7699; investors are also notifying that the Australian interest rates will be apprehended and be extended for the next coming months.
Japanese Stocks Up on Weaker Yen
As the weaker yen continues to linger, Japanese stocks remained bullish and capitalized on the weaker currency; the Nikkie 225 managed to increase by a tremendous 1.11% today or a total of 239.01 points. The stock was tremendously upbeat as it managed to close on a higher note for fifteen straight sessions.
Some of the top performing Japanese companies were; Nissan, which managed to pull off a massive 1.67% increase, while the Mitsubishi Motor was also up by an incredible 2.12%. Sony is also up by a respectable 0.94%, while the vast Topix also closed the session with relative high figures of 0.84%.
for your round-the-clock market update! We provide you with the latest news surrounding Forex, commodities, automobile, consumer, financial, economy, and technology. Never miss any news beat! Subscribe now!