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Japanese Yen Holds Near Monthly Low Against Broadly Stronger USD
Thursday, 19 June 2025 10:27 WIB | USD/JPY |USD/JPY,

The Japanese Yen (JPY) reversed modest Asian session gains against the broadly stronger USD and remained near monthly lows retested earlier this week. The Bank of Japan's (BOJ) cautious approach to winding down its decade-long monetary stimulus forced investors to push back their expectations about the likely timing of the next interest rate hike to Q1 2026.

Additionally, concerns about the potential economic impact of the US's 25% tariffs on Japanese vehicles and a reciprocal 24% levy on other imports turned out to be key factors undermining the JPY.

The USD, on the other hand, rose to its highest level in over a week following the Federal Reserve's (Fed) hawkish pause on Wednesday. This further helped the USD/JPY pair to hold steady above the 145.00 psychological mark, though traders seemed reluctant to place any aggressive directional bets.

Uncertainties surrounding US President Donald Trump's trade policies and escalating geopolitical tensions in the Middle East continued to weigh on investor sentiment. This revived demand for traditional safe haven assets and in turn, helped limit deeper losses for the JPY.(alg)

Source: FXstreet

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