Value Of Dollar Weakens Against Major Currencies, The Yen And The Sterling Grow In Power

The value of the dollar has dived against most of the currencies considered the major players in the forex market. The latest data shows that the dollar had a choppy trading session on Tuesday.

The reason why the dollar value has dipped is because of the expectations of the investors that the Feds may resort to changing the policy.

The policy change must be due to the decisions made by the Bank of Japan (BOJ). It is highly likely that they may cause the yield curve control to end.

It may force the Feds to increase their aggression towards the monetary policies.

Japanese Yen to Gain Momentum

Due to these expectations, investors are hopeful that the value of the yen is going to surge significantly. This is the reason why they are investing heavily in the yen.

Therefore, the trading price of the yen has surged significantly against the trading price of the dollar. This is not the first time the yen has gained momentum against the dollar.

The yen has been witnessing this trend for the past few weeks. Its value is constantly moving upward and the investors are not losing their focus.

They are constantly adding their contribution in the form of investments in the yen. This is pushing the value of the yen higher against the dollar.

The price chart shows that start from January 6 until now, the value of the yen has surged by almost 5% against the dollar. It is a great boost the yen price has recorded against the dollar.

Sterling is Performing Well also

The yen is not the only currency that is performing well against the greenback, the sterling is also making itself known to traders.

The sterling has also gained momentum against the yen. Its value has continued surging and is now at a five-week high trading price against the dollar.

The reason behind the sterling price surge is the decisions made by the Bank of England (BOE). The BOE is also eager to control the rising inflation rates in the country.

Therefore, it is eager to make changes to the interest rates and see how things work out. While doing so, the BOE has managed to push the trading price of the sterling to higher levels.

It is gaining more and more strength against the dollar and the traders are not ready to withdraw from providing their support to the currency.

BOJ vs BOE

According to analysts, the BOJ and the BOE have become the center of focus for traders in recent weeks.

However, it is the BOE that has caught more attention of the investors than anyone else. There are strong speculations that the BOJ may deviate from the yield curve control (YCC) policy.

It is expected that the BOJ may end or change the YCC policy completely in order to deal with the economy. This is the reason why the value of the Japanese is not gaining much strength against the sterling.

On the other hand, the BOE is coming up with policies that are stronger and may continue pushing the value of the dollar higher.

The situation may fall in favor of the sterling in the upcoming days. It is expected that the value of the sterling may continue surging throughout the year 2023.

How has the Dollar Performed?

The trading session shows that the value of the dollar has dived by 0.2% versus the value of the yen. The value of the yen is now at 128.24 yen per dollar.

Then comes the value of the dollar against the Swiss franc. The value of the greenback has plummeted by 0.5% against the Swiss franc. It has dropped to 0.9220 francs versus the dollar value.

The value of the NZD and AUD have surged 0.8% and 0.5% respectively against the value of the USD. The value of the euro has fallen by 0.3% against the dollar while the sterling value has surged 0.7% against the dollar.