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Japanese Yen Looks To Strengthen Further Against Weakening USD
Thursday, 26 June 2025 11:21 WIB | USD/JPY |USD/JPY,

The Japanese Yen (JPY) remained firm against the broadly weaker US Dollar (USD) and re-approached weekly highs during the Asian session on Thursday (6/26). Investors appear convinced that the Bank of Japan (BOJ) will raise interest rates again amid signs of expanding inflation in Japan.

In contrast, the Federal Reserve's (Fed) latest projections and the dot plot point to two more rate cuts before the end of the year. This marks a significant divergence from the BOJ's hawkish expectations and is seen as a key factor behind the JPY's outperformance against its American counterpart.

Meanwhile, US President Donald Trump's fresh threat that he is considering replacing Fed Chair Jerome Powell has fueled concerns about the central bank's independence. This overshadowed the recent optimism over the Israel-Iran ceasefire and dented global risk sentiment, further benefitting the JPY's safe-haven status.

On the other hand, the USD slumped to its lowest level since March 2022 amid the Trump-Powell standoff and bets for further rate cuts by the Fed. This contributed to the USD/JPY pair's decline towards mid-144.00s as traders eyed US macro data for fresh impetus. (alg)

Source: FXstreet

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