Yen stages recovery from three-decade low

Yen rebounds from 34-year low, stocks hold steady

By Ahmed Azzam | @3zzamous | 27 March 2024

Market close
  • Yen eyes intervention hints amid decline

  • Equities steady

  • Oil falls, gold near record high amidst market caution

The yen recoiled from its weakest position in 34 years, fueled by conjectures of potential Japanese authority intervention to bolster the currency. Meanwhile, equity markets showed little movement, with traders gearing up for the quarterly portfolio adjustment.

A significant assembly between Japan’s Ministry of Finance, the Bank of Japan, and the Financial Services Agency marked their first tri-party discussion since the end of May. Post-discussion, Japan's chief forex strategist, Masato Kanda, signaled a readiness to counteract undue market volatilities, attributing the yen's sharp decline to speculative trading. This declaration led to a marginal yen uptick in early London transactions.

Spotlight on market movers

Data from the Eurozone hinted at a resurgence in economic optimism, reinforcing the anticipation of the region's recovery from its recent slump.

In commodity news, oil prices continued their downward trajectory amid reports of a substantial increase in U.S. stockpiles, casting a somber mood over broader markets as the quarter-end approaches. Conversely, gold prices hovered near record highs, underscoring investors' persistent caution.