Yen Rebounds, Dollar Begins to Overwhelm
The Japanese yen (JPY) strengthened in the Asian session on Thursday (November 27th), halting a slight decline from a one-week high reached against the US dollar (USD) the day before. This strengthening was supported by speculation that Japanese authorities were ready to intervene if the yen's weakening continued too far, triggering anticipation of intervention in the foreign exchange market. At the same time, expectations that the Bank of Japan (BoJ) could raise interest rates as early as next month added support to the JPY, after Japan had long maintained its ultra-loose monetary policy.
However, the yen's strengthening was not entirely smooth sailing. The continued dominant risk-on sentiment in global markets and concerns about Japan's fiscal position under Prime Minister Sanae Takaichi's pro-stimulus policies curbed the yen's appeal as a safe haven. However, sustained selling pressure on the US dollar—fueled by strong speculation that the Federal Reserve would cut interest rates again in December—helped to restrain further gains in the USD/JPY pair. This combination of factors kept the yen's strength open, while limiting the potential for a major rebound against the Japanese currency. (az)
Source: Newsmaker.id
