Yen Rises Shortly After Shinzo Abe Shooting

Yen Rises Shortly After Shinzo Abe Shooting – Yen Rises Shortly After Shinzo Abe Shooting. The demand for a place of refuge briefly lifted the yen on Friday after former Japanese prime minister Shinzo Abe was shot while campaigning for parliamentary elections, while the dollar’s continued strength kept the euro hovering just above parity.

The single currency has hit a 20-year low in a row this week on a sign the eurozone economy is headed for recession, but is up from previous session lows as markets adjust some bets ahead of monthly US jobs data.

Abe, Japan’s longest-serving leader, died on Friday after he was shot while he was speaking in the western city of Nara.

The yen was up as much as 0.5% immediately after news of the shooting but then gave up most of those gains and at 10:47 GMT, was up 0.1% at 135.89.

While Abe is best known for his signature “Abenomics” policies featuring bold monetary easing and fiscal spending, analysts played down the impact of the market shooting.

“This is a risk-off environment so the yen is performing better. This is very sad news but it looks like an isolated event and also we are talking about ex-politicians here,” customized organization ING Bank strategist Francesco Pesole.

The focus remains on the euro, which is down about 3% against the dollar this week as financial backers worry about the economic impact of the energy crisis caused by uncertainties in gas supplies from Russia.

The single currency fell 0.8% to a fresh two-decade trough against the dollar at $1.00720 by 07:44 GMT. It then recouped some losses and was last down 0.2% to $1.01430.

See also  US Dollar Sluggish Although The Fed Remains Hawkish

Meanwhile, the US dollar index soared to a fresh two-decade high of 107.790, and was last up 0.2% against a basket of currencies at 107.220.

“The chances of the euro dollar hitting parity cannot be ignored either today or in the coming days,” individualized organization Pesole said.

“The dollar force in general remains strong and concerns about the eurozone economic outlook add to concerns the ECB could provide as much tightening as the market dictates”.

The European Central Bank is preparing to start raising interest rates this month but will still follow the tightening steps of the Federal Reserve and most other central banks.

After the first 25 premise point rate hike this month, a bigger hike may be needed in September, individualized organization member of the ECB governing council Ignazio Visco.

Authentic is set for its second straight weekly decline against the dollar, but its 0.9% decline this week has been relatively modest amid the political turmoil that has seen Prime Minister Boris Johnson resign. The pound was down 0.3% on the day to $1.1989.

As energy prices dent confidence and growth in Europe, financial backers are increasingly worried about the US economy, even though the latest data beat forecasts.

The US non-ranch payrolls (NFP) figure is the next indicator, due at 12:30 GMT, with economists expecting around 268,000 jobs added in June.

A stronger number could ease recession fears, but would probably add to the rate hike bets, further lifting the dollar.

Two of the Fed’s most vocal birds of prey on Thursday said they would support another 75 premise point rate hike later this month but declines to a slower pace thereafter.

See also  What is the Net Worth or Net Worth To Be The Richest Person?

Check Also

Tesla Still Holds Bitcoin Worth IDR 3.3 Trillion

Tesla Still Holds Bitcoin Worth IDR 3.3 Trillion - Tesla Still Holds Bitcoin Worth IDR 3.3 Trillion. Tesla revealed it still holds $222 million worth of Bitcoin or about IDR 3.3 trillion in market value on the company's balance sheet after selling its 75 percent Bitcoin holdings. The company recorded a realized gain of USD 64 million on the conversion of this [...]

Leave a Reply

Your email address will not be published.