USD/JPY Moves Higher, But For How Long?
The USD/JPY pair rose again to around 155.85 at the start of Wednesday's Asian session, after declining for three consecutive days. The slight strengthening of the US dollar occurred as markets awaited the release of important economic data from the United States. However, the USD's gains still appeared limited due to volatile risk sentiment.
The US dollar found some support, but recent reports regarding the next Federal Reserve Chair candidate have made market participants cautious. Kevin Hassett, a White House economic adviser, is said to be the leading candidate. He is known to support more aggressive interest rate cuts, which could weaken the USD as the market sees a strong chance of a rate cut by the Fed on December 10th.
On the other hand, the Japanese yen has the potential to strengthen following comments by Bank of Japan Governor Kazuo Ueda. He emphasized that the Bank of Japan is ready to raise interest rates further if inflation and economic conditions meet expectations. This speculation of a rate hike could put pressure on the USD/JPY, as investors tend to choose the yen as a safe haven when there is a chance of a tighter monetary policy from the Bank of Japan. (az)
Source: Newsmaker.id
