The Japanese Yen saw some modest gains in Tuesday’s trade in a market clearly settling down to hear what the United States Federal Reserve will do and, perhaps as importantly, say, at the end of its midweek meeting Wednesday.
The market is looking for another three-quarter point hike in US interest rates, the latest in a series aimed at bringing rampant inflation to heel. Assuming this is delivered, market attention will be firmly on the Fed’s tone. It’s widely expected by economists that the central bank will ratchet back from any aggressively hawkish commentary, emphasizing instead that future rate rises will depend squarely on how inflation now responds.
