Yen Rises But Restrained, USD/JPY Remains Comfortable at High Levels
The USD/JPY currency pair moved within a limited range around 158.50 in Asian trading on Thursday. This narrow movement occurred because the strengthening US dollar was able to restrain the recovery of the Japanese yen, so the market is still tending to wait for a clearer direction.
The yen briefly strengthened after the Japanese government's statement opening the door to intervention if the currency weakens too quickly. However, the yen's strength is expected to be limited due to the continuation of loose fiscal policy. The prospect of Prime Minister Sanae Takaichi winning the midterm elections is also seen as encouraging government spending, which typically puts pressure on the yen.
Meanwhile, the US dollar remains strong, with the Dollar Index near a monthly high. The market expects the Federal Reserve to keep interest rates unchanged at its upcoming meeting, supporting the dollar and keeping USD/JPY at high levels. (az)
Source: Newsmaker.id