Japanese Yen Weakens Following Statements by Bank of Japan Governor:  The Japanese yen reached its lowest level in two months,
dropping to 148.5 yen to the dollar after its value decreased.
This decline comes after statements by the central bank governor, who said that it is unlikely that interest rates will be raised.

Topics
Japanese Yen Weakens Following Statements by Bank of Japan Governor Kazuo Ueda
Dollar Holds Steady Amid Trader Analysis of Federal Reserve Statements
Oil Rises Amid Stalled Gaza Ceasefire Talks and Global Demand Expectations

Japanese Yen Weakens Following Statements by Bank of Japan Governor Kazuo Ueda

The value of the Japanese yen fell to over 148.5 yen to the dollar, nearing its lowest levels in over two months,
as the latest comments from the central bank cast doubt on a strong shift in Japan’s monetary policy.
Governor of the Bank of Japan Kazuo Ueda stated that the central bank is “unlikely to raise interest rates forcefully,
even after ending negative interest rate policy.”
However, he acknowledged that the likelihood of achieving the 2% price stability target
was gradually increasing with the intensification of inflation and wage inflation cycles.
Ueda also warned that the Bank of Japan would communicate its plans and act in the markets carefully to avoid disruptive market moves.
Core inflation in Japan rose by 2.3% in December 2023, marking the lowest reading since June 2022
but surpassing the Bank of Japan’s 2% target for the twenty-first consecutive month.

Dollar Holds Steady Amid Trader Analysis of Federal Reserve Statements

The dollar index hovered around 104 on Thursday after falling for two consecutive sessions
as investors analyzed the latest comments from Federal Reserve officials to gauge interest rate expectations.
Boston Federal Reserve President Susan Collins stated that the central bank is carefully assessing evolving data
and outlooks as the policy remains in a good place, adding that it would be appropriate to begin policy normalization later in the year.
Markets currently anticipate less than a 20% chance of a Federal Reserve rate cut in March,
significantly down from the two-thirds chance seen earlier in the year.
Investors are now looking to Thursday’s new jobless claims data to gauge labour market health.

The dollar has incurred recent losses against most other major currencies but has remained strong against the Japanese yen.

Oil Rises Amid Stalled Gaza Ceasefire Talks and Global Demand Expectations

West Texas Intermediate crude futures rose above $74 a barrel on Thursday,
extending gains for the fourth consecutive session, as renewed tensions in the Middle East raised concerns about supply disruptions.
On Wednesday evening, Israeli Prime Minister Benjamin Netanyahu rejected a ceasefire offer presented by Hamas,
although U.S. Secretary of State Antony Blinken stated that there is still room for negotiation.
Investors also remained wary of the possibility of further U.S. military action against the Yemeni Houthi group.
On the demand side, official data showed that U.S. gasoline inventories fell by 3.15 million barrels last week,
well above expectations of 140,000 barrels.

Meanwhile, U.S. crude inventories rose by 5.5 million barrels last week, surpassing market expectations for an increase of 1.895 million barrels.

Japanese Yen Weakens Following Statements by Bank of Japan Governor