By Rae Wee
Singapore (Reuters) – De Yen reached its strongest level in more than two months on Thursday when investors are betting on further rates from the Bank of Japan (BoJ) this year, while the concern about new tariff threats by US President Donald Trump marked on sharp.
The Yuan got a lift after Trump said “it’s possible” for the US and China to have a new trade agreement and said he expected Chinese President Xi Jinping to visit the United States, although he did not give a timeline for the travel.
The Yen rose by more than 0.8% to touch a peak of 150.15 per dollar on Thursday, extending the profit of the previous session.
The Governor of BoJ Kazuo Ueda said on Thursday that he met Japanese Prime Minister Shigeru Ishiba for a regular exchange of views on the economy and the financial markets, but the two did not discuss recent rises in long -term interest rates.
“I don’t think there is one cause,” said Bank of Singapore Currency strategist Moh Siong Sim about the rise in the yen.
“Ueda said he did not discuss the rising yields with Ishiba, so perhaps it was excited to think that the recent increase in the yields that the Yen supported was not concerned, and that is why it is a green light for more yen strength and strength and Maybe a boj walk pretty quickly “
Investors have gradually added to bets that De Boj can rather rather rather than later, in particular because recent domestic data has supported the case for further tightening of the policy.
In China, the onshore Yuan rose by more than 0.2% to 7.2682 per dollar, while the offshore opposite pendant tapped 0.2% to 7,2686 in the same way.
The tariff threats of the Trump administration have weighed the Yuan in recent months, so the last comments from the president about a possible trade deal made the concerns about a further deterioration of tensions in the SINO-US in the short term, said currency traders.
All this left the dollar under pressure on Thursday.
The Greenback has exchanged aside in the last few sessions about Trump’s lack of concrete actions about his tariff threats, although still cautious investor sentiment covered the losses of the currency.
Geopolitics also appeared great after Trump to the Ukrainian President Volodymyr Zenskiy referred as a “dictator” in the midst of conversations to end the war in Russia-Ukraine.
Sterling floated near a top of two months and was the last 0.09% higher at $ 1,2597.
The euro applied 0.06% to $ 1,0428, after he had fallen in the previous session, because top policy makers at the European Central Bank took opposed views on inflation risks and on how much the bank stops economic growth.