In Wall Street, rates were mostly on the rise yesterday. Meanwhile, in Asia, rates fluctuated with Mainland China, Hong Kong and India experiencing meager declines while Japan saw its rates rising. The yen rate remained just below 160 yen per dollar, with authorities expected to intervene if it weakens further. Other major currencies remained stable in relation to the yen on Wednesday.
A survey by Bloomberg revealed that a third of economists believe the Bank of Japan will raise the key interest rate at their July meeting, marking a shift towards tighter monetary policy. Despite a rate cut in March, the Bank of Japan’s monetary policy remains ultra-loose compared to global standards.
In Australia, higher than expected inflation figures led to a strengthening of the Australian dollar and an increase in bond market rates as investors anticipated tighter monetary policy from the central bank. Consumer prices rose four percent in May instead of the predicted 3.8 percent.
European stock exchanges were expected to open greenly with Euro Stoxx 50 futures up half a percent before markets opened. Financial markets across different regions were experiencing various trends and developments in response to economic indicators and central bank policies.