Currency

The yen's dramatic fall against the dollar, reaching its weakest point since 1990, has sparked concerns about potential intervention from Japanese authorities. This decline, fueled by strong U.S. inflation data and expectations of continued high interest rates in the U.S., has reignited anticipation of currency intervention by the Japanese government.

The U.S. dollar surged to a five-month high against major currencies on Tuesday, fueled by stronger-than-expected U.S. retail sales figures, raising concerns about potential intervention from Tokyo as the yen languished at its lowest level since 1990. Meanwhile, the Chinese yuan edged lower despite better-than-expected GDP data for China's first quarter, as policymakers try to shore up confidence amidst a protracted property crisis.

The Japanese yen saw multi-year lows against the U.S. dollar and euro, prompting increased investor scrutiny on potential Japanese intervention as the Bank of Japan’s policy meeting approaches. Amidst strong performances from the euro and U.S. dollar, market participants are closely watching for possible actions from central banks to stabilize currency values.

Indian equity markets have rebounded strongly after a recent correction, with the S&P BSE Sensex and NSE Nifty 50 indices nearing their all-time highs. Five small-cap stocks, including Aegis Logistics, GNFC, Castrol India, and Manappuram Finance, are expected to experience positive bias and potential appreciation in the near term.

The U.S. dollar has reached a 34-year high against the Japanese yen, influenced by the Federal Reserve's stance on interest rates. Despite concerns about possible intervention by Japan to support its currency, market players note Japan's restraint from interfering in the market even as the yen weakens before the Bank of Japan's upcoming policy meeting.