The yen soared to an eight-week high against the dollar on Thursday, influenced by a Bank of Japan official advocating for ongoing interest rate hikes. In contrast, the British pound declined sharply after the Bank of England reduced interest rates, although it later pared some losses.
Market analysts like Karl Schamotta from Corpay suggest that the pound’s downturn could be contained due to the British economy’s structure. These developments come as global investors weigh the possibility of averted trade wars and the anticipated release of U.S. payroll figures.
The dollar index nudged upward against key currencies, yet remains close to recent lows. Meanwhile, the yen continued to experience buying pressure, which some experts attribute to expectations of BOJ rate adjustments.
(With inputs from agencies.)
