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2026-02-17 20:38:54
[Yen Recovers Some Losses, Dollar Holds Steady Awaiting Fed Minutes] ⑴ On Tuesday, the yen rose against the dollar and euro, partially recovering losses from the previous trading day. Market expectations that Japanese Prime Minister Shigeru Ishiba's expansionary fiscal policies will continue to support the economy have fueled expectations of capital repatriation to Japanese assets. As of press time, the yen was up 0.25% against the dollar to 153.15 and up 0.41% against the euro to 181.19. ⑵ Barclays stated that its model shows the fair value of the dollar against the yen is around 140, corresponding to the level before Ishiba won the LDP leadership election last October. The institution believes that assuming the "Ishiba premium" is not fully reversed, 150 could be a near-term target. Previous data showing only slight growth in the Japanese economy in the fourth quarter had put pressure on the yen on Monday. ⑶ The dollar has risen slightly against the euro over the past two trading days, with the market awaiting the release of the Fed meeting minutes and US economic data later this week for clues about the timing of an interest rate cut. The US dollar index rose slightly by 0.1% to 97.21. Strategists at BNY Mellon noted that recent data signals are mixed; while inflation is no longer accelerating, it remains above 2%, and the labor market faces further concerns. (4) In other currencies, the pound fell 0.35% to $1.3582 as UK unemployment rose to a five-year high and wage growth slowed, reinforcing expectations of further interest rate cuts by the Bank of England. The euro slipped 0.15% to $1.1834, and the Australian dollar edged down to 0.7061 against the US dollar. Overall market trading was thin, with many Asian countries on Lunar New Year holiday and the US markets closed on Monday for Presidents' Day.
