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Japanese Yen Strengthens Near One-Week High Against USD Amid BOJ Rate Hike Speculation
Wednesday, 25 June 2025 09:53 WIB | USD/JPY |USD/JPY,

The Japanese Yen (JPY) remained firm against its US counterpart during the Asian session on Wednesday (6/25) and remained close to a one-week high hit the previous day amid a combination of supportive factors.

The Bank of Japan (BOJ) June meeting summary showed that some policymakers called for interest rates to be kept steady for the time being due to uncertainty over the impact of US tariffs on the Japanese economy. In addition, the fragile Israel-Iran ceasefire and trade-related uncertainties supported the JPY as a safe-haven asset.

Meanwhile, investors appear convinced that the BOJ will raise interest rates again amid broad inflationary pressures in Japan. The bet was reaffirmed by Japan's Producer Price Index (PPI), which rose for the third straight month in May and remained above the 3% YoY level.

In contrast, traders have been pricing in the possibility that the Federal Reserve (Fed) will lower borrowing costs further this year. This, in turn, keeps US Dollar (USD) investors on the defensive and suggests that the path of least resistance for the lower-yielding JPY remains to the upside. (alg)

Source: FXstreet

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