Japanese Yen strengthens due to BoJ rate hike bets, weaker US Dollar
USD/JPY depreciates after three days of gains, trading around 155.80 during the European session on Thursday. The pair loses ground as the Japanese Yen (JPY) advances on market expectations of a 25-basis-point interest rate hike by the Bank of Japan (BoJ) on Friday.
The Japanese Yen (JPY) strengthened as traders anticipated a 25-basis-point interest rate hike by the Bank of Japan (BoJ) on Friday. Japanese officials expressed cautious optimism, indicating a balance between economic growth and fiscal responsibility. Meanwhile, the US Dollar (USD) faced losses as investors awaited further Federal Reserve policy tightening.
Fed Chair Kevin Warsh highlighted the need for inflation reduction, suggesting the Fed's decision to raise rates was a cautious step. Analysts cautioned against reading too much into the Fed's median projections, noting potential changes as developments unfold. With the USD/JPY pair trading around 155.80, a bearish near-term bias was evident, but a stabilizing price above the nine-day EMA suggested short-term consolidation.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- Euro falls below 179.00 as Japanese Yen strengthens ahead of BoJ fxstreet.com
- Dollar strengthens against dong on black market e.vnexpress.net
