US Dollar Strengthens, Yen Under Pressure—USD/JPY Advances to Highs
The USD/JPY pair rose around 0.2% to 156.60 in late Asian trading on Wednesday. This strengthening occurred as the US dollar rose following the release of the minutes of the Federal Reserve's December policy meeting. Although the market was relatively quiet ahead of the end of the year, buying interest in the dollar remained quite strong.
The US Dollar Index rose to around 98.30, its highest level in a week. This occurred even though the FOMC minutes showed that Fed officials were still open to further interest rate cuts. They believe a more neutral policy is necessary to prevent a weakening labor market, and the market now expects further rate cuts in 2026.
Meanwhile, the Japanese yen came under pressure as market participants doubted the Bank of Japan would soon tighten its monetary policy. The government's support for fiscal spending to stimulate economic growth has made the yen less attractive. However, BoJ officials have signaled that changes in corporate behavior regarding wages could open up room for future policy adjustments, but the market is not yet fully convinced of this direction. (az)
Source: Newsmaker.id
