The Japanese yen appreciated as the Bank of Japan intensified its hawkish stance, leading to a decline in USD/JPY and yen crosses. This move comes amid expectations that the BOJ could raise interest rates to 0.75% by March, potentially narrowing yield differentials and increasing risks of carry trade unwinding.
In the U.S., equities surged with the Dow Jones Industrial Average climbing approximately 650 points on renewed expectations of rate cuts. Tech stocks showed mixed performance; Apple and Alphabet reached record highs, while Nvidia faced declines due to heightened competition in the AI chip market. Additionally, a 5% decrease in Thanksgiving air travel volumes indicates consumer caution amid ongoing inflation concerns.
Yen Strengthens as Bank of Japan Signals Rate Hike
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