JPY dropped lower. Overview for 12.04.2024


The Japanese yen maintains its downward momentum in the pair with the US dollar. The current USDJPY exchange rate stands at 153.25.

JPY reached new 34-year lows today. Robust economic data in the US negatively affects the currency market as a whole and the yen in particular. Confident reports reduce the likelihood of the Federal Reserve rapidly decreasing interest rates.

While investors expected six rate cuts at the beginning of the year, they only anticipated a maximum of three earlier this week. Forecasts have worsened, with market participants expecting a maximum of two interest rate cuts from the Federal Reserve.

The yen is falling since the Japanese authorities only use verbal interventions. Japan’s minister of finance, Shunichi Suzuki, stated today that the government is observing the yen’s levels and also analysing the reasons leading to these.

Earlier this week, Bank of Japan governor Kazuo Ueda said that the regulator will need to consider the possibility of reducing monetary easing if inflation continues to rise.

Source: Roboforex

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