Yen Rises Amid Global Tensions
The Japanese yen strengthened during the Asian session on Tuesday after previously weakening against the US dollar. Buying interest emerged when the exchange rate fell, halting its sharp decline from a one-week high. Expectations of Japanese government intervention to stem the yen's weakening continued to support the currency's movement.
The yen's strengthening was also supported by escalating geopolitical tensions over Greenland and concerns about a global trade war. These conditions have prompted investors to seek safe assets, thus reinforcing the yen's demand. Furthermore, the prospect of an early interest rate hike by the Bank of Japan also contributed to positive sentiment.
However, market participants remain cautious ahead of the Bank of Japan's policy announcement on Friday. Domestic political uncertainty and rising demand for the US dollar are limiting further yen strengthening. Currently, the USD/JPY pair is trading around 158.00. (az)
Source: Newsmaker.id