Currency

The Nifty 50 Index is currently experiencing a bearish trend, prompting analysts to recommend a "sell on rise" strategy for capitalizing on temporary rallies within the overall downward movement. Meanwhile, the Nifty Midcap Select Index is facing resistance and support levels that could potentially trigger further market momentum, necessitating close observation by investors.

The Bank of Japan opted to maintain its current monetary policy after a meeting on April 26, causing the Japanese yen to hit its weakest level against the dollar since 1990 at 156 yen. BOJ Governor Kazuo Ueda mentioned that the yen's depreciation hasn't significantly impacted inflation rates, but investors were prompted to sell the yen and buy the dollar due to the interest rate gaps between Japan and the United States.

The Japanese yen weakened to multi-year lows against the US dollar and euro, prompting speculation of intervention by the Bank of Japan ahead of its policy meeting this week. The dollar's strength is attributed to expectations of a later interest rate cut by the Federal Reserve compared to other major central banks.

The yen dropped to its weakest point against the dollar since 1990, with investors closely monitoring any potential intervention from Japanese authorities to support their currency. This decline in the yen follows robust U.S. inflation figures that have pushed the dollar to its highest levels in five months, leading to speculation that the Federal Reserve may not rush to implement interest rate cuts this year.

Japanese authorities are considering intervening in the currency market to stabilize the yen, which has been experiencing excessive volatility and declining against the dollar. This comes as the dollar has strengthened against the yen due to market expectations of a near-term U.S. interest rate cut, pushing the yen to a 34-year low.