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
The Japanese yen weakened to near 158.5 per dollar on Thursday, amid market concerns over the worsening fiscal outlook. The Bank of Japan (BOJ) began a two-day policy meeting, and traders remained war...
The USD/JPY pair weakened in Asian trading on Monday, hovering around 156.20 and briefly approaching 156.00. This weakening occurred after the Japanese Yen (JPY) strengthened, following signals from t...
The Japanese yen is the worst-performing major currency against the US dollar throughout 2025, despite the Bank of Japan (BOJ) raising interest rates. Even with further tightening measures, the yen co...
The Japanese yen weakened slightly during the Asian session on Wednesday, as investors remained cautious while awaiting the Bank of Japan (BoJ) policy update. Market focus now turns to the two-day BoJ...
The USD/JPY pair weakened to around 155.10 at the start of the Asian session on Tuesday. The yen strengthened slowly as markets became increasingly confident that the Bank of Japan (BoJ) would raise i...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...