Dollar Hit, Yen Jumps After Japan Intervention and Oil Drop
The Bloomberg Dollar Index posted its biggest daily decline in more than three weeks after oil prices retreated, while all G10 currencies strengthened against the greenback. The Bloomberg Dollar Spot Index fell 0.9% on Thursday (April 30), putting the dollar on track for a 1.9% monthly decline—its worst since June.
The dollar's weakness was exacerbated by a surge in the yen after Japan was suspected of resuming foreign exchange market intervention. USD/JPY fell 2.5% to 156.46 and briefly touched 155.57, with the yen's intraday gain reaching around 3%—its largest in nearly two years.
In Europe, the euro and pound also strengthened on more hawkish policy signals. EUR/USD rose 0.5% to 1.1738 after Christine Lagarde signaled the ECB would consider a June interest rate hike. GBP/USD rose 1% to 1.3608 after the Bank of England (BoE) left interest rates unchanged, but some policymakers left open the possibility of future increases.
The Swiss franc also strengthened sharply, with USD/CHF falling 1.3% to 0.7813, its biggest drop since April 8. The combination of falling oil prices, yen intervention, and shifting interest rate expectations in Europe were the main catalysts for today's dollar unwinding. (Arl)*
Source: Newsmaker.id
