Tokyo/Brussels, May 5 (SANA) The Japanese yen steadied on Tuesday as global markets remained on edge after a recent rebound driven by speculation that Japanese authorities intervened in currency markets last week. The U.S. dollar strengthened, supported by safe-haven demand as escalating tensions in the Middle East dampened investor sentiment.
The Australian dollar was little changed at $0.7168 ahead of a widely expected monetary policy decision by the Reserve Bank of Australia, which is expected to raise interest rates for a third consecutive time in an effort to curb inflation.
The euro remained near overnight lows at $1.1693, while the U.S. dollar index, which measures the greenback against a basket of six major currencies, was little changed at 98.452 after rising 0.3% in the previous session.
European stocks closed lower on Monday, pressured by heightened global uncertainty linked to geopolitical tensions and rising oil prices. The pan-European STOXX 600 index fell 1% to 605.51 points, marking its sharpest daily drop in about a month.
Recent economic data suggest a shift in market expectations, with investors now anticipating that the European Central Bank will raise interest rates at least three times this year, by 25 basis points each. This outlook weighed on eurozone bank stocks, which declined 2.7%, their steepest one-day drop in more than six weeks.
Automaker shares also declined 2.1% amid concerns over potential tariff increases on exports to the United States. Shares of German industrial group Thyssenkrupp slipped 1.8% following setbacks in talks to sell one of its business units.
Analysts say Europe’s reliance on external energy sources remains a key obstacle to market recovery, as concerns grow over stagflation risks that could hamper growth and industrial output across the region.
R.D/ABD
