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2025-10-31 21:15:44
[Yen Gains Temporary Breath, Pound Plunge] ⑴ The yen strengthened slightly on Friday after Japan's new Finance Minister, Hodaka Katayama, stated he was closely monitoring currency market movements with a high degree of urgency. ⑵ The dollar held steady against the yen at 154.125, remaining above its near nine-month low, as Tokyo's core CPI rose 2.8% year-on-year, exceeding expectations. ⑶ The yen fell 4% in October, its worst monthly performance since July, and its exchange rate against the euro fell to a record low. ⑷ The dollar index hit a three-month high, driven by central bank decisions and tech earnings reports, with risk aversion supporting a stronger dollar. ⑸ Federal Reserve Chairman Powell remained cautious about a December rate cut, with market expectations dropping from over 90% a week ago to around 75%. ⑹ The euro was flat against the dollar at 1.1562, after the European Central Bank kept interest rates unchanged at 2% for the third consecutive month, and fell 1.4% cumulatively this month. (7) The pound fell 0.2% to 1.312, bringing its monthly decline to 2.3%, as political pressure surrounding Chancellor Rachel Reeves continued to mount. (8) The euro rose 0.15% against the pound to 0.8812, a more than two-year high, and is on track for its fifth consecutive monthly gain. (9) Market concerns about the impact of the UK budget on the economy led investors to flock to UK government bonds as a safe haven, causing bond yields to fall. (10) Analysts pointed out that the UK government faces difficult choices, and continued fiscal uncertainty continues to weigh on the pound's performance.
