Japanese Yen Surges on Safe Haven Demand
The Japanese yen was the best performer in Asia on Monday, strengthening sharply on safe haven demand. The currency extended gains against the dollar after the Bank of Japan hiked interest rates and hinted at further increases. Positive economic data also supported the yen’s rally.
Dollar Weak Amid Recession Fears and Rate Cut Bets
The US dollar and Euro fell in Asian trade as concerns over slowing economic growth in the US led to expectations of more interest rate cuts by the Federal Reserve. Traders are now pricing in a higher chance of a 50 basis points rate cut in September, putting pressure on the dollar.
Overall, Asian currencies were mixed on Monday, with some showing resilience despite the gloomy economic outlook. Investors are closely watching central bank policies and economic data for further cues on currency movements.