The euro and the Japanese yen moved higher in yesterday’s session, while the US dollar weakened against major currencies, as leading central banks kept monetary policy unchanged amid concerns over rising inflation driven by elevated energy prices following the war in the Middle East.

The European Central Bank left its key deposit rate unchanged at 2%, while signaling that it is closely monitoring risks to growth and inflation stemming from increasing energy costs. The euro gained 1.16% against the dollar, with the exchange rate reaching 1.1582. The Bank of Japan also held rates steady but left the door open for tighter monetary policy. The yen strengthened by 1% against the dollar, reaching 158.14 per dollar.

In a similar stance, the Bank of England maintained its benchmark rate at 3.75% and signaled readiness to intervene if necessary. The British pound rose 0.8% against the dollar, with the exchange rate at 1.3368. A day earlier, the Federal Reserve also held its position steady but revised its inflation outlook upward, while maintaining expectations for one rate cut later this year. The dollar index fell by approximately one percentage point, to 99.21.

Source: Brief