The greenback reached 102.85 on Thursday, marking its strongest level since mid-October following forecasts from major brokerages like Goldman Sachs predicting further U.S. interest rate hikes. In currency markets, the yen hovered near 159.58 per dollar ahead of an appearance by Bank of Japan board member Toichiro Asada. Persistent interest rate gaps continue to fuel yen weakness, even though Japanese wholesale inflation surged 7.1 percent year-on-year in October. Amid these currency shifts, digital assets retreated slightly, with bitcoin sliding 0.59 percent and ether dropping 0.78 percent.
Key points
Growing expectations for Federal Reserve interest rate hikes continue to bolster the U.S.…: Growing expectations for Federal Reserve interest rate hikes continue to bolster the U.S. dollar across global foreign exchange markets.
Japanese currency weakness persists due to wide interest-rate differentials, despite elev…: Japanese currency weakness persists due to wide interest-rate differentials, despite elevated domestic wholesale inflation prompting forecasts of a central bank rate hike.
Major digital assets experienced mild declines alongside currency movements, with bitcoin…: Major digital assets experienced mild declines alongside currency movements, with bitcoin dropping to $73,876.57 and ether falling to $2,052.27.
Sources checked by our analysis pipeline: 1
TOKYO, Nov 12 : The dollar held near a one-month high against major peers in early Asian trading on Thursday, supported by growing expectations of a Federal Reserve rate hike, while the yen edged toward the psychologically important 160-per-dollar level.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.63 per cent to 102.85, its highest level since October 14.
Traders ramped up bets on further Fed tightening after stronger-than-expected October inflation data and a series of hawkish remarks from US central bank officials, who expressed concern over stubborn inflation and left open the possibility of a larger 50-basis-point increase. Some major brokerages, including Goldman Sachs, now expect another hike early next year, in addition to one in December.
New York Fed President John Williams is set to appear on a panel late Thursday that will be closely watched given his "pre-October FOMC meeting views the Fed had time on rate hikes," said Gavin Friend, senior markets strategist at National Australia Bank, in a note.
Indian benchmark indices surged following the holiday break, propelled by softening crude oil prices, robust corporate earnings, and substantial foreign capital inflows. However, overbought momentum indicators and global headwinds from hawkish Federal Reserve commentary capped the session's overall advance. In response to these selective market conditions, analysts are focusing on technical breakouts within the domestic banking sector.
Concordia Pcl is seeking a listing on the Yangon Stock Exchange to transition from a family-run business into a professionally managed enterprise. Facing severe import delays caused by national instability and post-coup sanctions, the medical equipment distributor plans to eventually partner with foreign investors for local manufacturing. Exchange officials hope this rare debut will spark a broader revival of the dormant domestic capital market.
Investors observed downward pressure on the equity during late trading following the regular market close today. Precise drivers and potential catalysts behind the negative performance remain entirely undisclosed at this stage. Market participants are left awaiting further clarity as official explanations have not yet emerged.