Dollar Index traded near a six-week low on Wednesday as the Japanese yen stabilised after recent market intervention. Investors also welcomed signs of diplomatic progress in the Middle East.
Ready Player Two Screenwriter Zak Penn Confirms Sequel Is Still in Development
The yen strengthened slightly to 157.60 per US dollar. However, it remained above this week’s high after recovering from recent multi-decade lows.
US Backs Japan’s Currency Efforts
US Treasury Secretary Scott Bessent said Washington would support Japan’s efforts to stabilise the yen.
Moreover, he expressed confidence that Bank of Japan Governor Kazuo Ueda would make decisions that best support the country’s economy.
His comments strengthened expectations that the Bank of Japan could raise interest rates at its policy meeting on September 17–18.
Dollar Holds Near Six-Week Low
The US Dollar Index (DXY) remained largely unchanged at 99.85 after touching its lowest level in six weeks earlier this week.
Meanwhile, the euro traded at $1.1533, while the British pound held steady at $1.3458.
The New Zealand dollar slipped after unemployment rose to a 10-year high. In contrast, the Australian dollar remained broadly unchanged.
Oil Prices Ease
Oil prices extended their decline as hopes for diplomatic progress between the United States and Iran reduced concerns about supply disruptions.
As a result, Brent crude futures fell again after dropping 5% in the previous session.
Qatar said mediators were making progress in efforts to ease regional tensions. Investors believe a breakthrough could improve shipping through the Strait of Hormuz.
Markets Await US Jobs Report
Investors have now turned their attention to Friday’s US non-farm payrolls report.
Additionally, lower oil prices have reduced expectations of another Federal Reserve interest rate increase in September.
According to market pricing, traders now see a lower probability of a September rate hike than they did a week ago.
