The U.S. dollar weathered another suspected outburst from Japanese intervention to push the yen higher on Monday, as most stock markets rallied on mere suspicion of a possible slowdown in U.S. rate hikes. United.
The Dollar started off in a bullish mood with a rush to 149.70 Yen, before suddenly reversing all the way to 145.28 within minutes. Still, speculators seemed fearless and took the dollar back to 148.90 in choppy trading.
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What happened overnight
A slump in Chinese stocks overshadowed a rally in stocks in other major Asian markets on Monday, as Treasury yields slipped from multi-year highs.
Hong Kong’s benchmark stock index opened about 2% lower as investors grappled with the late release of China’s economic growth data and the conclusion of the party congress in Beijing.
Stocks were higher in Japan, South Korea and Australia, while US futures rose after Wall Street stocks had their best week since June.
Trading in major currencies was choppy, with the yen swinging between gains and losses amid signs of a second intervention by Japanese authorities in two sessions. Volatility is expected to continue as government efforts to rein in rapid depreciation run counter to the Bank of Japan’s ultra-loose monetary policy.