Yen Rises, dollar retreats as G7 eyes currency calm

The US dollar took a breather on Thursday after Federal Reserve comments solidified expectations of continued monetary tightening, Reuters reported.

This, along with efforts by the G7 to maintain currency stability, dampened the greenback’s recent surge.

The Japanese currency strengthened to 153.96 on Thursday, but it remains close to a 34-year low of 154.79 touched earlier this week.

Market participants remain cautious, with some analysts raising the intervention threshold for the yen to 155 or even 156 against the dollar. Japan last intervened in 2022 to defend the weakening currency.

Elsewhere, the euro remained relatively unchanged after a recent gain around $1.0676. Sterling saw a slight increase after Wednesday’s gains, trading at $1.2465.

The broader dollar index, which tracks the greenback’s value against a basket of six major currencies, dipped slightly to 105.87.

This pullback comes after the index reached a five-and-a-half-month high of 106.51 on Tuesday, as traders took a breather following the index’s 4.5 per cent gain so far this year.