Dollar falls against yen Japan on expectations of further rate cut
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| Dollar Vs Yen Japan |
Dollar Us fell 0.66% against the Japanese currency in late afternoon trade on Friday, to 140.855 yen, after earlier falling to 140.285 yen, its lowest since Dec. 28. The dollar has fallen 1% against the yen for the week.
The dollar fell to a nine-month low against the yen on Friday, September 13, after new media reports suggested the US Federal Reserve would cut interest rates by 50 basis points at its meeting next week.
Analysts said the shift in market expectations was due to reports published on Thursday, September 12, by the Wall Street Journal and the Financial Times, which revealed that a 50 basis point rate cut was still an option, along with comments from a former Fed official supporting a large rate cut.
Markets are now expecting a 51% chance of a 50 basis point rate cut by the Fed on Wednesday, September 18, at the conclusion of its two-day meeting, up from 15% early Thursday. Markets are also expecting a 117 basis point rate cut in 2024, up from 107 points expected on Thursday, according to Reuters.