Il Nuovo Postiglione - Yen swings after hitting new 34-year low; stocks mixed

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Yen swings after hitting new 34-year low; stocks mixed

ECONOMY 29.04.2024

Yen swings after hitting new 34-year low; stocks mixed / Photo: Richard A. Brooks - AFP

The yen swung in volatile trade Monday as it rebounded soon after hitting a 34-year low against the dollar, fuelling speculation Japanese authorities had intervened to support the currency for the first time since late 2022.

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The dollar's rally came as another forecast-topping US inflation report dented hopes for US Federal Reserve interest rate cuts this year.

The yen sank to 160.17 to the greenback in choppy Asian trade, with liquidity also thin amid a holiday in Japan. It later bounced back as high as 154.54.

"We're seeing huge volatility in the Japanese yen at the start of the week," said analyst James Mill at trading firm TickMill.

"The move suggests that Japanese authorities have finally intervened in the market after plenty of anticipation over recent weeks."

Masato Kanda, Japan's vice minister of finance for international affairs, offered no comment to reporters on Monday.

The currency has come under renewed pressure after the Bank of Japan (BoJ) refused to tighten monetary policy further at its meeting last week.

Officials have repeatedly said they are ready to step in if there are wild movements in the exchange rate, citing speculators as a key issue.

"The BoJ's dovishness in keeping rates unchanged late last week was an open invitation for yen sellers," noted Finalto analyst Neil Wilson.

Most Asian equity markets rose Monday following a pre-weekend rally on Wall Street as strong tech earnings offset the stubbornly high personal consumption expenditures (PCE) price index.

Eurozone stocks diverged, but London struck another record peak after UK music rights owner Hipgnosis agreed to an improved $1.6-billion takeover from US private equity firm Blackstone.

British energy infrastructure group Petrofac saw its share price collapse by almost a third after announcing a delay to its audited 2023 results, but said it had made "progress" with creditors over a debt restructuring.

"Although the audit is substantially progressed, the company and its auditor require additional time to complete the annual report," Petrofac said in a statement, adding that shares will be suspended from May 1 until annual earnings are published.

In Amsterdam, Philips rose 42 percent after it reached a settlement in United States to put an end to litigation over re-called sleep machines.

- Key figures around 1040 GMT -

Dollar/yen: DOWN at 155.90 yen from 158.33 yen on Friday

London - FTSE 100: UP 0.5 percent at 8,180.65 points

Paris - CAC 40: UP 0.1 percent at 8,093.15

Frankfurt - DAX: FLAT at 18,162.19

EURO STOXX 50: DOWN 0.2 percent at 4,996.28

Hong Kong - Hang Seng Index: UP 0.5 percent at 17,746.91 (close)

Shanghai - Composite: UP 0.8 percent at 3,113.04 (close)

Tokyo - Nikkei 225: Closed for a holiday

New York - Dow: UP 0.4 percent at 38,239.66 (close)

Euro/dollar: UP at $1.0717 from $1.0693

Pound/dollar: UP at $1.2533 from $1.2493

Euro/pound: DOWN at 85.54 pence from 85.59 pence

Brent North Sea Crude: DOWN 0.6 percent at $89.00 per barrel

West Texas Intermediate: DOWN 0.2 percent at $83.69 per barrel

O.Nardolillo--INP

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