The US dollar unexpectedly fell against the Japanese yen last night and currently hovers around 156.33. The development is likely due to the brief weakening of the greenback.
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According to Japanese Finance Minister Shunichi Suzuki, the government’s attempts to support the Japanese yen may have impacted the market. According to official government figures, Japan spent about 9.79 trillion yen (62.2 billion USD) in its efforts to stabilize its currency. The Japanese Finance Minister highlighted that the efforts of the government were to reduce fluctuations in the currency market.
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Furthermore, Suzuki said that Japan would continue to watch the forex market and act against volatile movements.
Will the US dollar and gold rise?
Gold prices hovered around $2,340 on Wednesday and are up by nearly 14 points. The yellow metal witnessed a surge of 0.58% in the day trading hours and shows signs of recovery. Gold is among the best-performing assets this year, rising by 15% year-to-date.
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Despite its recovery, the Central Bank of Vietnam has warned that gold prices could face a correction in the coming months. According to Dao Xuan Tuan, the director of the central bank’s foreign exchange management department, ‘People need to be very cautious when buying gold as prices are highly volatile.’
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On the other hand, the US dollar has surged by nearly 5% in the currency market year-to-date, making it a promising investment. Furthermore, there has been a lot of talk about BRICS, and other alliances, ditching the US dollar. However, USD continues to dominate international trade.
