市場分析

Yen Stabilizes, Dollar Struggles as Traders Await Central Bank Moves

Amos Simanungkalit · 19 Mar125.7K 閱讀

Image Credit: Reuters

The yen held steady on Wednesday, while the dollar struggled to recover ahead of significant rate decisions from both the Bank of Japan (BOJ) and the Federal Reserve later in the day.

Overnight, Israeli airstrikes on Gaza killed over 400 people, U.S. President Donald Trump and Russian President Vladimir Putin failed to reach a ceasefire agreement on Ukraine, and Germany's outgoing parliament approved a large spending increase. Despite these developments, currency movements were relatively calm, with traders staying cautious ahead of the central bank meetings, especially the Fed's.

The euro reached a five-month high of $1.0955 in the previous session and was trading near that level at $1.0937. Investors were hopeful that Germany's fiscal shift could boost economic growth and military spending in Europe. Deutsche Bank’s Robin Winkler noted that while the shift is significant, structural reforms are essential to ensure sustainable growth.

Meanwhile, the yen remained little changed at 149.32 per dollar, as traders awaited the BOJ's policy decision. The central bank is expected to keep rates unchanged, but all eyes will be on Governor Kazuo Ueda's remarks for any hints on future rate hikes. MFS Investment Management's Carl Ang noted that the BOJ is likely to maintain a hawkish stance due to strong inflation and wage growth expectations.

Sterling traded at $1.30, close to its four-month high, while the Australian dollar edged up 0.02% to $0.6362, after a 0.4% drop the previous day. The New Zealand dollar slipped 0.05% to $0.5818.

The dollar inched up to 103.33, but remained near Tuesday's five-month low of 103.19. It has fallen nearly 4% this month, weighed down by Trump's unpredictable tariff policies and growing recession fears in the U.S.

The Fed's meeting later on Wednesday is critical for investors, as they look for guidance on how Trump's policies may affect the U.S. economy and the central bank's future rate decisions. While the Fed is expected to keep rates unchanged, new economic projections will be closely scrutinized. Analysts at Bank of America Securities expect the meeting to focus on policy uncertainty, with forecasts likely reflecting stagflation—weak growth coupled with rising inflation.