The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
Buildings in the Makati Central Business District
Economic Updates
Monthly Recap: BSP to outpace the Fed in rate cuts 
DOWNLOAD
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
DOWNLOAD
investment-ss-3
Economic Updates
Policy rate views: Uncertainty stalls cuts
DOWNLOAD
View all Reports
Metrobank.com.ph Contact Us
Follow us on our platforms.

How may we help you?

TOP SEARCHES
  • Where to put my investments
  • Reports about the pandemic and economy
  • Metrobank
  • Webinars
  • Economy
TRENDING ARTICLES
  • Investing for Beginners: Following your PATH
  • On government debt thresholds: How much is too much?
  • Philippines Stock Market Outlook for 2022
  • No Relief from Deficit Spending Yet

Login

Access Exclusive Content
Login to Wealth Manager
Visit us at metrobank.com.ph Contact Us
Access Exclusive Content Login to Wealth Manager
Search
The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
Buildings in the Makati Central Business District
Economic Updates
Monthly Recap: BSP to outpace the Fed in rate cuts 
May 29, 2025 DOWNLOAD
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
May 8, 2025 DOWNLOAD
investment-ss-3
Economic Updates
Policy rate views: Uncertainty stalls cuts
May 8, 2025 DOWNLOAD
View all Reports
Currencies 3 MIN READ

Japan’s yen bears brunt of market rethink on Fed

August 12, 2022By Reuters
Related Articles
Japan's Nikkei rises for eighth day on earnings optimism, weaker yen April 18, 2023 UPDATE 3-U.S. warns China after South China Sea standoff with Philippines November 19, 2021 Oil rises 1% on supply concerns, expectations for fuel switching September 14, 2022

SINGAPORE, Aug 12 (Reuters) – The Japanese yen fell the most against a resurgent US dollar on Friday, as a two-day rally in equities conceded to market expectations that the Fed will have to do a lot more to contain inflation.

That realization followed speeches and statements from a bunch of Federal Reserve officials warning investors against being sanguine after this week’s slight softening in inflation numbers.

The latest was San Francisco Fed President Mary Daly, who said on Thursday that a 50 basis point interest rate hike in September “makes sense” given recent economic data including on inflation, but that she is open to a bigger rate hike if data warrants.

The Nasdaq and S&P 500 retreated on Thursday, despite fresh evidence of cooling inflation.

The dollar index rose 0.1% to 105.210, with the euro down to USD 1.0311.

The Japanese yen weakened 0.12% to 133.19 per dollar, while sterling was last trading at USD 1.2184, down 0.23% on the day.

The euro rose 0.05% against the yen at 137.340.

Even the kiwi, supported by expectations of a big rate rise in New Zealand next week, fell 0.16% versus the greenback to USD 0.643.

“The market will come to a realization that the FOMC has a lot more work to do and they will have to increase the funds rate to as high as 4% at the end of this year,” said Carol Kong, a Sydney-based senior associate for currency strategy and international economics at Commonwealth Bank of Australia.

“I do think there is some room for markets to revise higher again their expectation for the Fed funds rate, so that will help the US dollar to push higher again and erase all the losses following the CPI and PPI figures that we got.”

Thursday’s data showed US producer prices (PPI) unexpectedly fell in July amid a drop in the cost of energy products. That followed Wednesday’s surprise news that consumer prices (CPI) were unchanged in July due to a drop in gasoline prices.

While that data caused a relief rally in markets fearing the Fed’s super-charged tightening path, it was short-lived. Despite its recent bounce off mid-June lows, the tech-heavy Nasdaq is down about 18% so far this year.

The dollar index is still up 10% this year, rising alongside the 225 basis points of Fed rate rises since March.

Against the yen, it had fallen as far as 131.74 overnight, a one-week low, from Wednesday’s 135.30 peak. It was back at 133.245 on Friday.

US Treasury yields rose too, more at the longer end, causing the inverted yield curve to be less so.

“It suggests scepticism from the bond market and taking a ‘one swallow doesn’t make a spring’ attitude,” analysts at Commerzbank wrote. “Inflation may have peaked but they may remain sticky and still too high for the Fed’s liking.”

In the world of cryptocurrencies, bitcoin was flat and last at USD 23,915.00.

(Editing by Sam Holmes)

 

This article originally appeared on reuters.com

Read More Articles About:
Worldwide News Philippine News Rates & Bonds Equities Economy Investment Tips Fine Living

You are leaving Metrobank Wealth Insights

Please be aware that the external site policies may differ from our website Terms And Conditions and Privacy Policy. The next site will be opened in a new browser window or tab.

Cancel Proceed
Get in Touch

For inquiries, please call our Metrobank Contact Center at (02) 88-700-700 (domestic toll-free 1-800-1888-5775) or send an e-mail to customercare@metrobank.com.ph

Metrobank is regulated by the Bangko Sentral ng Pilipinas
Website: https://www.bsp.gov.ph

Quick Links
The Gist Webinars Wealth Manager Explainers
Markets
Currencies Rates & Bonds Equities Economy
Wealth
Investment Tips Fine Living Retirement
Portfolio Picks
Bonds Stocks
Others
Contact Us Privacy Statement Terms of Use
© 2025 Metrobank. All rights reserved.

Read this content. Log in or sign up.

​If you are an investor with us, log in first to your Metrobank Wealth Manager account. ​

If you are not yet a client, we can help you by clicking the SIGN UP button. ​

Login Sign Up