Dollar Plunges for a Week, Yen Nervous Ahead of BOJ
The US dollar plunged to its worst weekly decline in a year. The turmoil emerged after President Donald Trump issued a threat regarding Greenland and then abruptly reversed course, leaving investors nervous and choosing to reduce exposure to dollar-denominated assets.
The dollar index hovered around 98.329 after a sharp drop in the previous session, and is now likely to decline by around 1% for the week—its worst performance since January 2025. Meanwhile, the euro held around $1.1751, near a three-week high, while the pound sterling hovered around $1.3496, near a two-week peak.
In Asia, market attention was focused on the weakening yen ahead of the Bank of Japan (BOJ) interest rate decision. The BOJ is expected to hold interest rates after raising them to a 30-year high last month, but markets are awaiting signals from Governor Kazuo Ueda on when the next hike will occur and how hawkish his policy direction will be.
The yen remains under pressure, hovering around 158.50 per dollar, potentially marking a fourth consecutive weekly decline. Market participants are concerned that if the yen breaks through 160, the Japanese government could intervene in the foreign exchange market to stem the decline, especially as fiscal concerns mount after the new prime minister secured a snap election and promised tax cuts.
Meanwhile, the Australian dollar held steady at around $0.6841, and the New Zealand dollar weakened slightly to $0.5914. In the crypto market, Bitcoin strengthened to around $89.518, slowly moving away from this week's low, as investors reposition themselves amidst global uncertainty. (asd)
Source: Newsmaker.id
