The US dollar struggled on Wednesday, extending losses incurred against the euro and sterling on Tuesday. The euro and sterling both benefited from positive economic data, while weaker US business growth and easing inflation pressures weighed on the dollar. Meanwhile, the yen remained weak despite intervention warnings from Japanese officials.
The Japanese yen remains near its lowest level since the mid-1990s against the strong U.S. dollar. Investors are watching for possible intervention from Japanese authorities as the yen approaches 155.00, a trigger point for past interventions. The Bank of Japan’s rate decision this week will also be closely monitored, as it could signal a more hawkish stance to combat the yen’s weakness. The dollar’s strength against other currencies, including the euro and sterling, has supported the possibility of continued yen weakness and U.S. dollar strength in the near term.
