Dollar Calm, But Sure!
The dollar held steady on Monday morning, while traders remained cautious as the risk of Japanese intervention reemerged. A holiday in Tokyo kept trading thin, and the yen weakened to around 156.71 per dollar. The Japanese currency continues to be pressured by ultra-low interest rates and loose fiscal policy, although it briefly strengthened last week after Finance Minister Satsuki Katayama warned of possible intervention.
Market participants believe intervention could occur if USD/JPY touches the 158-162 area, especially during the thin Thanksgiving holiday trading that is prone to sharp fluctuations. Some analysts warn that intervention could occur as early as Friday evening London/New York time, potentially triggering a rapid decline in the yen if liquidity is low. The Japanese government reiterated that intervention is an option to cushion the economic impact of a weaker yen.
In Europe, the euro was flat at around $1.1506, although the likelihood of a Fed rate cut in December rose again after dovish comments from John Williams. The pound sterling hovered near $1.3093 ahead of the UK budget announcement on Wednesday, as the government tries to balance economic support with fiscal discipline.
In Oceania, the New Zealand dollar held steady at $0.5608 after weakening nearly 8% since July due to a worsening economic outlook. The market is almost certain the RBNZ will cut interest rates by 25 basis points on Wednesday, although doubts remain about whether further cuts will occur next year. The Australian dollar was at $0.6453, with the focus on Wednesday's first monthly CPI release, which is expected to remain high at 3.6%.
In the crypto market, Bitcoin stabilized at the end of the week but came under pressure again in the Asian session, falling around 2% to $86,250. (Asd)
Source: Newsmaker.id
