The US dollar resumed its upward momentum and the yen weakened again

(1) The dollar resumed its upward trend on Wednesday, falling slightly higher after falling earlier on the Fed’s interest rate cut bets this year, while the yen weakened again, the dollar rose above the 155 mark against the yen again, and the risk of Japanese intervention remained high. (2) USD/JPY hit as high as 155.18 on Wednesday, pump about 0.32%, away from the near four-week low of 151.86 set last week when the Japanese authorities suspected of intervening to depreciate the yen. (3) Analysts said that any intervention by Japan would only provide a temporary respite for the yen, given that interest rate differentials between the US and Japan remain wide. (4) Central Bank Governor Kazuo Ueda said on Wednesday that the Central Bank may take monetary policy action if the yen’s move has a significant impact on inflation, and further warned about the impact of the yen’s recent sharp depreciation on the economy. Japanese Finance Minister Shunichi Suzuki once again warned that the Japanese authorities are ready to deal with excessive fluctuations in the forex market. (5) Carol Kong, forex strategist at the Commonwealth Bank of Australia (CBA), said, “If we see a sudden and significant rise in the USD/JPY Exchange Rate, then I expect them to enter the market to support the yen.” But if we continue to see a gradual move higher, I doubt they will step in, but obviously there is a risk" (6) The dollar index extended its pump, hitting a three-session high of 105.53, some way from a one-month low set last week. (7) Investors continue to focus on the pace and timing of Fed rate cuts, which could drive Exchange Rate movements, with the latest weaker-than-expected U.S. non-farm payrolls data and the Fed’s easing bias cementing expectations of a possible rate cut before the end of the year. (8) Minneapolis Fed President Kashkari said on Tuesday that it was too early to declare that progress in the fight against inflation must have stalled. This has little impact on the market’s interest rate cut expectations. (9) Rodrigo Catril, senior forex strategist at National Australia Bank, said, “The market has taken lightly the comments of Minneapolis Fed President Kashkari, who is a hawk and is not a voting member this year.”