The yen initially rose following Japan's warnings about speculative volatility but later weakened. The USD/JPY pair increased by 0.1% to 157.37 after Japan's Finance Minister, Shunichi Kato, expressed concerns over recent exchange rate movements driven by speculators. He hinted at potential intervention during low trading periods.
The Bloomberg Dollar Index rose by 0.1%. Analysts from CIBC noted that the index has climbed over 2% this month due to expectations of the Federal Reserve pausing in early 2025 and increased tariff risks before Trump's January 20 inauguration. They anticipate these factors will continue to support the dollar through the end of the month.
The EUR/USD fell by 0.1% to 1.0390, while the AUD/USD dropped by 0.4% to 0.6227. The Reserve Bank of Australia expressed confidence in inflation approaching targets, despite IMF warnings of downside risks. The USD/CAD rose by 0.1% to 1.4391.
