Dollar (US Dollar) With its strength, it has once again moved towards dominating the currency of the entire world. With this, alarm bells have rung for Asian countries. Indeed, investors expect that the Federal Bank (Federal Bank) Interest rates can be kept high in America. The value of the dollar has continued to rise for seven consecutive weeks. This is the biggest jump since 2018. But the problem is that due to the strength of the dollar, the currencies of Asian countries have started losing their footing in the market. It remains a matter of great concern for all other countries including India. Now it is being told that on Tuesday, Japan’s currency Yen has touched a new record low. The euro fell from January’s all-time low of 1.0482 against the dollar as manufacturing surveys from both Europe and the US released on Monday highlighted contrasting economic conditions in both regions. Dollar Index (Dollar Index) rose about 0.5% to 107.06, after briefly reaching 107.12, its highest level since November 2022.
Japanese government is sensing danger
A survey published on Monday indicated that the US manufacturing sector moved closer to a recovery in September with output and employment rising. The survey also revealed a decline in factory input prices. Favorable economic data supported the Fed’s stance that interest rates should remain high for a longer period of time, however, a last-minute compromise to prevent a government shutdown dampened demand for US debt. Additionally, the dollar benefited from rising US Treasury yields. Strong US economic indicators in recent weeks have increased confidence that the Fed will maintain its current rate policy for an extended period. However, many policymakers have cautioned that if inflation does not decline as anticipated, further tightening may be necessary. The Yen has faced increased pressure due to the recent strengthening of the Dollar and its approach towards the psychologically important level of 150. This level is seen by the markets as a threat line for the Japanese government and could lead to intervention, as happened last year.
Japan’s top economic officials issued another warning, expressing a “strong sense of urgency” over the yen’s weakening. In dollar terms, the yen last traded at 149.80, up slightly from an overnight low of 149.88. The Euro Zone PMI survey indicated that demand has declined since data collection began in 1997. As a result, the euro fell to $1.0462 during Asian trading, its lowest level since December last year. The pound was last valued at $1.20790 on March 16. The Australian dollar remained relatively unchanged as the Reserve Bank of Australia was expected to announce its interest rate decision later in the day. According to a Reuters survey of analysts, Australia’s central bank is likely to maintain its benchmark interest rate at 4.10%. However, another increase in rates is expected next quarter, as long as inflation remains above target, the maximum cash rate will be 4.35%.