11-7-2024 (SINGAPORE) The Singapore dollar continued its remarkable ascent against the Japanese yen on Thursday afternoon (July 11), reaching an unprecedented high of more than 120 yen per Singapore dollar. This milestone comes amid a period of sustained weakness for the yen, even as the US dollar experienced a decline earlier this week.
Despite the US dollar’s recent softening, the yen remained under significant pressure, with the Nikkei index hitting new highs. The market’s expectations for interest rate cuts were fueled by US Federal Reserve Chairman Jerome Powell’s speech to the US Congress, in which he signaled a potential shift in monetary policy.
According to some analysts, the Fed may not necessarily wait for inflation to fall below the 2% target before considering rate cuts. Instead, the central bank has begun to pay closer attention to the weakening job market, potentially paving the way for preemptive action.
Market participants are eagerly awaiting the release of US inflation data on Thursday. Analysts believe that even if the figures show rising inflation rates, investors may be less disappointed if other economic indicators continue to point toward further weakness.
The USD/JPY exchange rate has been on an upward trajectory since crossing the 161 yen mark on Tuesday, currently trading at around 161.75 yen per dollar. Meanwhile, the USD/SGD exchange rate has retreated, settling at approximately 1.3485 Singapore dollars per US dollar.
