Yen rose on Monday against a basket of major rivals, maintaining gains for the third straight session against the dollar and trading near three-week highs under supervision of Japanese authorities which might intervene once again in the forex market.
The yen is also boosted by risk aversion as investors buy up safe currencies after the assassination attempt of ex-US President Donald Trump.
The Price
The USD/JPY fell 0.2% today to 157.83 yen, with a session-high at 158.43.
The yen rose 0.4% on Friday against the greenback, the second profit in a row, marking a three-week high at 157.35 as the Bank of Japan intervened.
The yen also rose 1.8% last week against the dollar, the second weekly profit in a row, and the largest since late April.
Intervention
Bank of Japan’s daily operations data showed it spent upwards of nearly $22 billion on Thursday to prop up the currency.
The yen marked strong gains against most major rivals even on Friday, raising speculation it might have intervened once again on Friday.
The BOJ spent nearly $61.55 billion in late April to boost the yen and intervene back then.
Trump Assassination
Republican candidate for the US Presidency Donald Trump was shot in the ear in an assassination attempt during an election rally, with the ex-President surviving without lasting damage.
The assassination attempt will likely boost Trump’s election chances against incumbent president Joe Biden.
The attempt and increasing political violence risks further uncertainty and instability in the US, which constitute risks for the markets.
Most cryptocurrencies rose on Friday as the risk appetite rebounded on forecasts the Fed is heading for a rate cut soon.
Earlier US data showed producer prices rose 2.6% y/y in June, the fastest pace since March 2023.
Earlier data showed consumer prices rose 3% y/y in June, slowing down from 3.3% in May.
Core consumer prices rose 3.3% y/y, the slowest pace since April 2021.
The Fedwatch tool showed an 88.1% likelihood of a 0.25% interest rate cut at the Federal Reserve September meeting.
Ethereum
Ethereum rose 0.5% as of 20:37 GMT on Coinmarketcap to $3129.7, while marking a 4.6% profit this week.
US stock indices rose on Friday after marking the worst daily performance on Thursday since April, as investors assess data and corporate earnings.
Earlier US data showed producer prices rose 2.6% y/y in June, the fastest pace since March 2023.
Earlier data showed consumer prices rose 3% y/y in June, slowing down from 3.3% in May.
Core consumer prices rose 3.3% y/y, the slowest pace since April 2021.
On trading, Dow Jones rose 0.8%, or 316 points as of 16:33 GMT to 40,070, while S&P 500 rose 0.9%, or 49 points to 5633, as NASDAQ added 1.1% to 194 points to 18,478.
Oil prices rose in American trade on Friday, heading for the third straight session and scaling a week high as the dollar weakens.
Prices are underpinned by a drop in US commercial crude stocks for the second week in a row, in a positive sign of demand in the world’s largest fuel consumer.
Prices
US crude rose 1% today to $83.71 a barrel, the highest in a week, with a session-low at $82.81.
Brent rose 0.75% today to $86.31 a barrel, the highest in a week, with a session-low at $85.47.
On Thursday, US crude rose 0.6%, while Brent added 0.2% as both the dollar and US yields lost ground.
US Dollar
The dollar index fell 0.75% on Friday, extending losses for the third straight session and almost hitting five-week lows at 104.08 against a basket of major rivals.
A weaker dollar reduces the prices of greenback-denominated commodities, and they become more attractive to holders of other currencies.
The dollar is hurt by recent cold US inflation data, as inflationary pressures recede on the Fed’s policies.
The data boosted the odds of multiple Fed rate cuts in September and November.
US Stocks
The Energy Information Administration reported a drawdown of 3.4 million barrels in US crude stocks last week to 445.1 million barrels, while analysts expected a buildup of 0.7 million barrels.
Gasoline stocks fell by 2 million barrels to 229.7 million barrels, while distillate stocks surged by 4.9 million barrels to 124.6 million barrels.
US Production
The EIA also reported a buildup of 100 thousand bpd last week to a total of 13.3 million bpd, the highest since February 2.
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