Dollar Slumps Against Yen Amidst Interest Rate Uncertainty
The US dollar took a hit on Thursday against the Japanese yen, sparking speculation about potential intervention by Japan to support its currency.
This move comes amidst interest rate considerations and inflation concerns. Recent data showed that US inflation slowed in June, a day after the Federal Reserve kept interest rates unchanged, disappointing those who had anticipated a hike.
The prolonged weakness of the yen has worsened the economic impact of high energy import prices, leading to expectations of intervention by Japan.
As the global market grapples with economic uncertainties, including slow US growth and inflation pressures related to the ongoing Iran conflict, the euro and British pound have gained ground. Cryptocurrency markets also saw movement, with Bitcoin rising 2%.