The U.S. dollar remained largely steady in early Tuesday trading, while the Japanese yen strengthened after the Bank of Japan (BoJ) concluded its two-day monetary policy meeting.
اضافة اعلان
As expected, the BoJ maintained its interest rates and announced a new plan to slow the pace of reducing its balance sheet starting next year, citing increasing global risks, including the Middle East conflict and U.S. tariffs.
The yen initially fluctuated following the announcement but later strengthened decisively, rising 0.2% to 144.50 yen per dollar.
Across broader currency markets, the dollar held steady as risk appetite remained low amid the fifth day of escalating conflict between Israel and Iran.
On Monday, the White House announced that President Donald Trump would leave the G7 summit in Canada early due to the Middle East crisis, directing the National Security Council to prepare for developments from the situation room. Trump had also urged the immediate evacuation of Tehran and reiterated that Iran should have agreed to a nuclear deal with the U.S.
The risk-sensitive Australian dollar rose 0.13% to $0.6533 after early-session losses, while the New Zealand dollar edged up 0.1% to $0.6065.
Against a basket of major currencies, the dollar index remained almost unchanged at 98.13, according to Reuters data.
Analysts at DBS Bank noted in a memo, “Recent developments in the Middle East pose a serious threat to regional stability. While the long-standing Israeli-Iranian conflict has reached a dangerous phase, market sentiment still assumes global spillover risks are manageable.”
Despite geopolitical concerns, currency market movements remained subdued as investors awaited key decisions from major central banks this week.
The U.S. Federal Reserve’s policy announcement on Wednesday is in sharp focus. While rates are expected to remain unchanged, market attention will be on any forward guidance regarding interest rate projections.
The euro showed little movement, trading at $1.1562, while the British pound last traded at $1.3576.
(Sky News Arabia)
