Yen Strengthens Sharply; Dollar Takes Another Hit
The Japanese yen extended its gains against the US dollar and the euro during late trading in New York on Friday (July 31). The Japanese currency rose approximately 1% against both currencies after receiving a fresh boost just before the market closed.
The USD/JPY pair fell by as much as 1.2% to around 157.70. Meanwhile, EUR/JPY weakened by about 1% and briefly touched the 181.99 level, signaling broad-based demand for the yen.
The yen's appreciation accelerated following reports that the Federal Reserve Bank of New York had asked several US banks to review key exchange rates. This move sparked speculation that authorities are intensifying their scrutiny of dollar-yen movements.
Pressure on the dollar was also evident in the Bloomberg Dollar Spot Index, which recorded a decline of approximately 1.3% over the week. This weakness reflects growing market caution regarding the Federal Reserve's policy trajectory and potential further measures to stabilize the yen.
Newsmaker Analysis: The drop in USD/JPY below 158.00 indicates that the yen's strengthening momentum remains dominant. This situation could weigh on the dollar index while supporting gold prices in the short term. However, volatility remains high as the market awaits clarity on potential intervention and the Bank of Japan's policy direction. (arl)
Source: Newsmaker.id
