Dollar Weakness vs Yen: Impact of US Economic Data and Fed's Interest-Rate Cuts
The dollar softened against the yen on Friday, reflecting shifting investor sentiment as U.S. housing numbers disappointed. This marked a significant moment as traders took profits, while fresh economic data suggested a potential for interest-rate cuts by the Federal Reserve. With recession worries fading, the yen was set for its largest weekly decline since June.
Disappointing U.S. Housing Numbers
U.S. single-family homebuilding fell in July, driven by higher mortgage rates and house prices that kept prospective buyers sidelined. This indicates a depressed market at the start of the third quarter.
Market Reactions
- The dollar fell 1.04% against the Japanese yen, reaching 147.75 from a two-week high of 149.40.
- The decline of the yen indicates a response to easing fears of a recession.
- Traders are closely monitoring the Fed's sentiment regarding future interest-rate cuts.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.