Currencies

Yen skids to fresh 38-year low, U.S. dollar tumbles after weak data


The dollar slipped on Tuesday in thin, choppy trading after Federal Reserve Chair Jerome Powell struck a moderately dovish tone in his comments, suggesting that the U.S. central bank is more than likely to start its easing cycle later this year.

Brendan Mcdermid | Reuters

The yen sank to a fresh 38-year low against the U.S. dollar and a record trough versus the euro on Wednesday, as the Japanese unit continued its downward spiral, with market participants on high alert for Japan intervention to boost the currency.

The dollar, on the other hand, fell after a slew of softer-than-expected U.S. economic data that added to expectations that the Federal Reserve will likely start cutting interest rates later this year.



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