The dollar remained strong on Tuesday, with the yen struggling below the 156 level as investors awaited clarity on Federal Reserve rate cuts. Cryptocurrencies saw a rally, led by ether, amid growing anticipation of SEC approval for spot ether ETFs.
In the early Asian session, the dollar rose 0.07% against the yen to 156.37. The yen has been trading in a tight range due to fears of intervention from Japanese authorities, but the interest rate differentials between the U.S. and Japan continue to support the yen as a funding currency.
Meanwhile, the euro and sterling edged higher against the dollar, with the euro at $1.0860 and sterling at $1.27095. With limited U.S. economic data this week, investors are looking to Fed speakers for clues on the rate outlook.
In the cryptoverse, ether surged over 5% to reach a one-month high of $3,691.80, while bitcoin also climbed over 3% to surpass the $70,000 level. Speculation around SEC approval for spot ether ETFs and positive macroeconomic factors have contributed to the recent crypto rally.
Analysts noted that the recent surge in cryptocurrencies was driven by a combination of speculation, positive inflation data, and the potential for rate cuts. With the SEC approval and recent market trends, the crypto market is experiencing renewed momentum.
Overall, the market remains cautiously optimistic about the future direction of currencies and cryptocurrencies, with a focus on upcoming Fed decisions and regulatory developments.