Japanese Yen outperforms as US tech rout and hawkish BoJ minutes lift demand
The Japanese Yen (JPY) outperforms all its major peers on Thursday as traders seek safety in the currency amid a sharp sell-off in US equities led by technology and chip shares. The US Dollar (USD) also gives up earlier gains and slips back into negative territory, adding pressure on USD/JPY.
Japanese Yen outperforms major currencies on Thursday, amid a sharp sell-off in US equities and hawkish remarks from Federal Reserve officials. The US Dollar slips back into negative territory, adding pressure on USD/JPY, which trades around 157.70, down 0.47% for the day. The Nasdaq slides more than 5%, while the Dow loses around 3%.
Investors seek safety in the Japanese Yen due to concerns over potential tightening of AI and data centre expansion scrutiny by a Democratic-controlled Congress. Meanwhile, the US 10-year Treasury yield falls 6 basis points to 4.83%, while the US Dollar Index (DXY) trades around 101.43. Comments from Cleveland Fed President Beth Hammack and Richmond Fed President Thomas Barkin highlight the Fed's need for a restrictive stance to combat high inflation.
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