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Stock Market
21 Apr 2022
Dollar Advances but Remains Vary as Finance Ministers Convene
The Index Today
The dollar rose on Thursday spurred by investor anticipation of hawkish monetary tightening by the U.S. Federal Reserve. However, the safe haven currency failed to attain the previous day’s highs as finance ministers of the G7 countries are set to convene.
According to Reuters, the dollar index edged up by 0.16% to 100.50 by 1:15am ET. On Wednesday, the greenback remained unchanged at 0.34% to 128.305 yen, after hitting a two-decade high of 129.430. This comes after the Bank of Japan (BOJ) continued to defend its decision to not hike interest rate hikes, contrary to what the Fed and other central banks across the globe have been doing to counter soaring inflation.
Westpac strategists contended, "Few central banks will match the Fed this year for policy hikes and balance sheet retrenchment, making for a dramatic policy differential in the USD's favour."
The BOJ on Wednesday offered to purchase unlimited 10-year Japanese government bonds for four consecutive sessions, extending its reliance on stimulus with Governor Haruhiko Kuroda contending that a frail yen could spell well for the economy, even as he maintained that currency volatility could negatively affect the country’s commerce, reported Reuters.
©Photo: Reuters
