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Weaker Yuan Spills Over Into G10 FX, USD/JPY Very Close To 2023 Highs

FOREX

The fresh break higher in USD/CNY through the 7.2000 level has had clear spill over effects to other major USD pairs. The BBDXY is up a little over 0.10% to 1243.2, putting the index back near pre FOMC levels from Wed (near 1244).

  • USD/JPY is marginally above post BoJ highs from Wed, last in the 151.80/85 region. This is also very close to highs from Nov last year at 151.91.
  • Intervention risks are likely to remain a market watch point. Earlier comments from FinMin Suzuki reiterated familiar rhetoric around FX markets but it didn't appear to be a step up in language.
  • Elsewhere, AUD and NZD are down by around 0.25-0.30%. AUD/USD last near 0.6550, while NZD/USD is back to 0.6030, close to YTD lows for this pair.

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