Greenback struggles after US Treasury secretary’s statement on currency wars
On Monday, the evergreen buck traded moderately higher against its main Japanese competitor, with traders avoiding making big moves without fresh trading cues.
The major American currency was worth ¥108.85, compared to ¥108.65 late on Friday, New York.
Market participants are currently watching data as well as events this week, including January-March Japan GDP data due Wednesday.
Tokyo-based dealers as well as analysts told a weak result will power hopes that the authorities will get down to extra stimulus to bring the greenback higher against the Japanese yen. Additionally, the median forecast from a poll of about 20 economists carried out by the Wall Street Journal pointed out to inflation-adjusted growth of 0.3%.
The vast majority of traders aren’t able to find a decisive market mover right now.
In its Saturday morning edition, the Nikkei posted that Shinzo Abe, Japan’s prime minister has made up his mind to push back a consumption tax hike planned for next April, explaining it’s a real threat to efforts to pull Japan out of deflation.