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On Tuesday, the US dollar fell against most other major currencies. This was due to easing concerns about a wider banking crisis, so that demand for assets considered safe, such as the US dollar, decreased.
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However, the Japanese yen, which is also usually considered a safe haven, strengthened against the US dollar. This may be due to the possibility of repatriation of overseas profits by Japanese companies ahead of the country's fiscal year-end on Friday. The repatriation could increase the demand for the yen, thus increasing its value. In addition, the risk-sensitive Australian dollar also strengthened on Tuesday. This may be due to market optimism over the global economic recovery and rising commodity prices. Meanwhile, the euro and sterling also strengthened against the US dollar on Tuesday. This could be due to several factors, such as the ECB's decision to maintain interest rates and its bond-buying program, as well as hopes for the success of Covid-19 vaccinations in the UK and the European Union. In Asian trading, the US dollar index fell 0.14% to 102.6, extending its 0.35% decline on Monday. The greenback also fell against the yen, reaching 130.62 yen at one point, and was last down 0.55%. Some analysts cited the possibility of Japanese repatriation ahead of the country's fiscal year-end as a factor in the US dollar's decline against the yen. The repatriation could increase demand for the yen, causing its value to rise against the US dollar.
The quote said the greenback fell 0.86% against the Japanese yen to 130.62 yen at one point, and then fell 0.55%. This erased most of the previous session's 0.64% gain. The greenback's decline came as long-term Treasury yields rose 15 basis points, the biggest gain in six months. Meanwhile, the 10-year yield was little changed in Tokyo trading on Tuesday and was around 3.52%. Bart Wakabayashi, branch manager at State Street in Tokyo, said that by the end of Japan's fiscal year, he thinks there will be some influx of Japanese repatriation. Repatriation is the process by which Japanese residents or companies bring back money they hold overseas to the country, and this can affect the exchange rate of the Japanese yen against other currencies such as the greenback.
The statement implies that relying on just one success or one positive event alone will not be enough to ensure long-term success. We must always go back to the basics and focus on results to achieve long-term goals. While the market may have responded positively to First Citizens BancShares' agreement to buy all of Silicon Valley Bank's deposits and loans, Wakabayashi stressed that no one can be too complacent or confident. He said that there are likely to be major challenges ahead, and it is important for people to prepare and position themselves well in case this happens.
Wakabayashi describes the challenges as a big cloud, which although it cannot be called a dark cloud, still requires serious attention and preparation. The first statement about the dollar as the "king" in the context of interest rates and security is a subjective view and can change over time. Although the US dollar has long been the dominant currency in world trade, it does not mean that the dollar's exchange rate is always stable and reliable. In fact, the dollar's exchange rate can be influenced by many economic and political factors, including US monetary policy, global market demand for the currency, and economic conditions in the US and other countries. In addition, other currencies such as the euro and the pound sterling also play an important role in global trade and can be worth the same or even higher than the dollar in some situations.
However, the statement about the dollar index reaching a high and then falling as risk sentiment rises and falls is true. The US dollar index (DXY) is a measure of the dollar exchange rate against a basket of other major currencies, and the rise or fall of this index can reflect changes in market sentiment towards the dollar. Therefore, fluctuations in the dollar index can be an important indicator for investors and traders in monitoring market movements. The statement about the Aussie (Australian dollar) and Kiwi dollar (New Zealand dollar) strengthening against the US dollar can be interpreted as meaning that the exchange rate of both currencies is rising against the US dollar at that time. However, the movement of the exchange rate of both currencies depends on economic and political factors in Australia and New Zealand, as well as global factors such as market sentiment, interest rates, and changes in commodity prices. In addition, the statement about the movement of the Bitcoin price which experienced a slight increase after a 3% drop on Monday due to technical problems at Binance, is a common occurrence in the cryptocurrency market which tends to be volatile. The price of Bitcoin and other cryptocurrencies is greatly influenced by market sentiment and the adoption of blockchain technology, as well as government regulation of the cryptocurrency market. Therefore, the price movements of cryptocurrencies such as Bitcoin can be very volatile and difficult to predict with certainty.
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Daily Technical Analysis: March 24, 2023 – Dollar Could Come Under Pressure As PMI |
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