US Dollar Strengthens as Dollar-Yen Exchange Rate Rises

(New York = Yonhap Infomax) Reporter Sunyoung Jeong = The value of the US dollar showed strength.

Dollar-yen exchange rate graph source: Yonhap Infomax

The Bank of Japan (BOJ) ended negative interest rates, but interest rates rose slightly, causing the dollar-yen exchange rate to rise again to the 150 yen range.

Market participants’ attention shifted to the Federal Open Market Committee (FOMC) meeting in March.

According to Yonhap Infomax (screen no. 6411), as of 9:07 am on the 19th (hereinafter referred to as Eastern Time), the dollar-yen exchange rate in the New York foreign exchange market is 150.470 yen, up 1.277 yen ( 0.85 %) of the previous day’s New York market closing price of ¥149.193. He went up.

The Euro-Dollar exchange rate was $1.08545, down $0.00149 (0.14%) from the previous price of $1.08694.

The Euro-Yen exchange rate was 163.27 yen, up 1.12 yen (0.69%) from the previous rate of 162.15 yen.

The dollar index, which reflects the dollar’s value against six major currencies, rose 0.26% to 103.886 from 103.616 the previous day.

The dollar-yen exchange rate has increased back to the 150 yen range since the 5th.

The BOJ raised the short-term interest rate from minus 0.1% to 0-0.1% and also abolished the yield curve control (YCC) policy by removing the 10-year yield target. It has been announced that an interest rate of 0.1% will be applied to excess reserves starting from the 21st.

However, it is reported that the current size and frequency of government bond purchases will be maintained even after YCC ends. The purchase limit has been reduced.

BOJ Governor Kazuo Ueda said, “If the outlook for price increases strengthens, we will consider additional increases,” and “If the weakening yen has a significant impact on prices and the economy, we will consider policy responses. “

Governor Kazuo predicted that Japan’s financial conditions will continue to ease for now.

Market participants turned their attention to the FOMC meeting in March.

Although it is accepted given that the US Federal Reserve will freeze interest rates this time, attention is given to see if the number of interest rate cuts in the dot plot will be reduced from three and if economic growth forecasts are adjusted upwards.

The Euro-Dollar exchange rate fell to $1.083 at one point during the day and then traded in the $1.085 range.

Germany’s economic outlook has improved.

The economic expectations index of the Center for European Economic Research (ZEW) for Germany in March recorded 31.7.

This is the highest level since February 2022.

Oxford Economics said in a report today, “Even if the global interest rate transition begins in the summer, the overweight view on the dollar index will be maintained over time,” adding, “With the continued growth rate gap and the possibility of a higher fiscal deficit over the next 10 years, the US “It appears that cash flow to assets will be maintained, so the dollar will be good in the medium term, ” he predicted.

syjung@yna.co.kr

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This article was published at 22:26 on the Infomax financial information terminal.

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