Yen Loses Ground Against Dollar on Rising Speculation about March Rate Increase
Japanese yen stumbled on Wednesday, falling to the lowest level in a week versus its American counterpart following hawkish comments from U.S. Federal Reserve policymakers overnight.
The pair USDJPY soared around 0.7% to as high as 113.530 – the highest level since February 22nd after a handful of Fed officials late Tuesday fueled speculations for a March U.S. rate hike.
While New York Fed President William Dudley said that the case for tightening monetary policy “has become a lot more compelling”, San Francisco Fed President John Williams stated that a rate increase next month was very much on the table given full employment and accelerating inflation.
According to CME Group’s Fed Watch Tool, traders saw a nearly 62% chance the U.S. central bank would raise its rate at a mid-March meeting.
Buy Stop at 113.600, Take profit 114.000, Stop loss at 113.400