The main event of the session were comments in a speech and following Q&A from Federal Reserve Board Governor Christopher Waller. His remarks were nuanced but leant towards holding rates higher for longer (delaying the first rate cut) and indicative of fewer rate cuts this year than have been indicated earlier. We’ve heard the same recently from Bostic and Kashkari.

Waller’s remarks sent the US dollar higher across the major FX board. As I post, though, those moves have been fully retraced.

USD/JPY was a bit of a laggard, but it did rise eventually to above 151.50. It too has subsequently retraced, back down to earlier levels around 151.25 or so. We have had just one comment from a Japanese official cross the wires to support the yen today, so far at least. Japan’s chief cabinet secretary Hayashi said he won't rule out any option against excessive FX moves.

Also from Japan was the ‘Summary’ of the historic Bank of Japan last week when rates were raised for the first time in 17 years. From the Summary a key takeaway is that this was a tentative step and further tightening will be slow to come.

The People’s Bank of China set the reference rate for the onshore yuan more than 1300 pips stronger than estimated (for CNY) again today.

Note, it’s a holiday across much of Asia tomorrow, Good Friday, 29 March 2024:

  • New Zealand, Australia, Hong Kong and Singapore are all out

Japan and mainland China will be open. There is inflation data coming from Japan during tomorrow’s session (Tokyo area, a leading indicator of nationwide inflation). ForexLive will be in to cover this, and more.

usdyen wrap chart 28 March 2024 2