As of 00:20 GMT, the dollar fell 0.42% to 141.22 yen, moving closer to this year’s lowest point, which was reached on Wednesday at 140.71. Gold last traded at $2,558.55, slightly below its all-time high of $2,560.01 on Thursday.
Investors increased their wagers on a massive Federal Reserve interest rate decrease next week on September 13 after media reports indicated officials would be making a closer call than initially anticipated.
According to LSEG data, traders increased their bets to 39% for a 50-basis point drop on September 18, up from roughly 28% prior to the publication of articles in the Financial Times and Wall Street Journal.
According to Tony Sycamore, an analyst at IG, “this is yet another twist in the (Fed rate cut) debate,” pointing out the tug-of-war occurring in bond futures and the dollar-yen rate specifically.
“Everybody thought we were back on track for 25 basis points, and now 50 is suddenly back on the table.”
As of 00:20 GMT, the dollar fell 0.42% to 141.22 yen, moving closer to this year’s lowest point, which was reached on Wednesday at 140.71.
The dollar index, which compares the US dollar against the yen and five other strong competitors, fell to a one-week low.
Gold last traded at $2,558.55, slightly below its all-time high of $2,560.01 on Thursday.
However, there was some volatility in the stock market. The Nikkei in Japan fell 0.7% due to a strengthening yen, while the Kospi in South Korea saw a little decline. Benchmark for Australia increased by 0.75%. Chinese markets were still closed.
With Seoul returning on Thursday, China on Wednesday, and Tokyo returning on Tuesday, all three countries—Mainland China, South Korea, and Japan—are gearing up for extended weekends.
US stock futures modestly increased after the cash indexes had gains on Thursday. S&P 500 futures increased by 0.1%.
After rising by about 2% overnight, crude oil prices kept rising as traders evaluated the effects of Hurricane Francine, which devastated offshore oil-producing regions, on Gulf of Mexico output.
Building on the 2.5% increase on Thursday, US West Texas Intermediate crude futures increased by 0.5% to $69.32 a barrel. Following a 1.9% increase in the previous session, Brent crude futures rose 0.4% to $72.26, closing at $72.25.
