The Japanese Yen Falls Again to 156

The Japanese yen has declined once again, surpassing 156 yen per dollar,
marking its lowest level in two weeks,
which has raised concerns about possible intervention by Japanese authorities to support the currency.

Content

Yen
British Pound
Oil

Yen

The Japanese Finance Minister, Shunichi Suzuki,
stated that the government is coordinating with the Bank of Japan to ensure consistent policy objectives
when it comes to foreign exchange.
He added that they are taking all possible measures to closely monitor the movements of the yen.
Earlier this month, the yen sharply rose after falling to 160 yen per dollar due to suspected government intervention,
with data from the Bank of Japan indicating that nearly $60 billion was spent to defend the currency.
However, the yen has now retraced about two-thirds of those gains as the significant interest rate differential between Japan and other major economies has encouraged investors to borrow yen and invest in higher-yielding currencies.

British Pound

The British pound stabilizes at $1.25 after labor market data.

The British pound briefly dipped before stabilizing around $1.25 as traders digest recent labor market data and monetary policy expectations. The unemployment rate in the UK rose for the third month, and wage growth remained at 6%, in line with expectations from the Bank of England, bolstering bets that the central bank might soon begin to cut interest rates. At its meeting in May, the Bank of England maintained interest rates, although two members called for a rate cut, indicating a shift towards lowering borrowing costs. Governor Bailey hinted at possible interest rate reductions in the future, suggesting a more flexible monetary policy going forward. Traders have slightly raised the likelihood of a rate cut in June, while a 25 basis point cut in August is fully anticipated.

Oil

Oil retains its gains amid concerns about supply disruptions.

West Texas Intermediate crude futures settled above $79 per barrel on Tuesday after rising more than 1% in the previous session, supported by concerns about potential supply disruptions in Canada. Markets were worried that the wildfire season in Canada could affect the country’s production capacity of 3.3 million barrels per day. Over the weekend, the Iraqi Oil Minister, Hayan Abdel Ghani, stated that they would adhere to OPEC+ policy regarding production cuts to be made at their upcoming meeting on June 1st, contradicting a previous statement that Iraq would not agree to any new production cuts. Investors are now looking forward to this week’s monthly market reports from OPEC+ and the International Energy Agency for new insights into supply and demand factors in the oil markets.

The Japanese Yen Falls Again to 156

The Japanese Yen Falls Again to 156

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