Yen inched lower and traded below the 105.20 level as the US Treasury yields continued to decline. The pair is the worst performing major currency of 2021 due to its sensitivity to the US Treasury prices.
Japan released the January Corporate Service Price Index yesterday, which exceeded expectations at -0.5% YoY, although, worse than the previous -0.4%.
With Japan on a holiday for Emperor’s Birthday and with no data releases scheduled for the day, Fed chair Powell’s testimony later in the day will be the key driver.
Powell is expected to reassert that the Fed will continue focusing on the labour markets and not counter higher inflation with an immediate rate hike. Bond markets are expected to calm after the testimony which may cause the Dollar to extend losses.
05 Mar 2021 06:06 PM
Key factors to keep in mind before the US markets open
05 Mar 2021 05:08 PM
India's foreign exchange reserves rose to $584.55 billion as of Feb 26, compared with $583.87 billion a week earlier, the Reserve Bank of India.
05 Mar 2021 04:36 PM
Have a look at how Indian rupee ended the day
05 Mar 2021 03:51 PM
Indian equities fell for a second straight session today and snapped their three-day gaining streak as investors remained spooked by a sharp rise in US yields. Sensex managed to hold 50,000 and closed below 441 points, but Nifty gave up 15,000.
05 Mar 2021 03:00 PM
Pound fell and traded around 1.3830 as Dollar extended gains following Powell’s dovish comments leading to an upward rally in US yields.
05 Mar 2021 02:56 PM
Find out how European markets are reacting today