The dollar strengthened against the yen on Friday, hitting a two-week high, after the Bank of Japan kept interest rates unchanged and indicated it was in no hurry to raise them again
The BOJ is taking its time to assess the impact of global economic uncertainty, Governor Kazuo Ueda said at a news conference following the central bank’s move, adding that its monetary policy decisions will be based on “economic, price and financial developments.” The BOJ kept interest rates steady at 0.25%, a move that was widely expected.
Gold rose above $2,600 on Friday for the first time, extending a rally fueled by speculation of further U.S. interest rate cuts and rising tensions in the Middle East.
Spot gold rose 1.3% to $2,620.63 an ounce by 1:43 p.m. ET (1743 GMT), while U.S. gold futures settled 1.2% higher at $2,646.20.
Bullion’s latest rally got a boost after the Federal Reserve kicked off an aggressive easing cycle on Wednesday with a half-percentage-point reduction, adding to the appeal of non-interest-bearing bullion.
Signs of an economic slowdown in top commodity consumer China boosted prices. But for the week, both benchmarks closed up more than 4%.
Wall Street closed flat on Friday, near the record closing highs hit by the Dow and S&P 500 in the previous session. Days after a rate cut, two Fed chairmen offered opposing views on the inflation outlook, underscoring the scale of the debate over a move that Fed Chairman Jerome Powell has positioned as an effort to keep the economy resilient rather than an emergency response to weak jobs data.
All three major U.S. stock indexes ended the week higher, not far from all-time peaks hit on Thursday as buyers turned to riskier assets.
