Japanese Yen Soars, US Dollar Takes a Hit!
The Japanese Yen (JPY) continued to strengthen against the US Dollar (USD) and opened the week with a bullish gap, reaching its highest level since November 14th. This strengthening was driven by Japanese Prime Minister Sanae Takaichi's warning against speculative moves, following an interest rate review by the Japanese Ministry of Finance and the New York Federal Reserve. This raised speculation about the possibility of joint US-Japanese intervention to stabilize the JPY.
Furthermore, the Bank of Japan's (BoJ) hawkish policy outlook and geopolitical uncertainty have led investors to increasingly seek the JPY as a safe haven. Meanwhile, the US Dollar weakened sharply to its lowest level since September 2025 due to the "Sell America" trading trend and predictions that the US central bank will cut interest rates two more times this year.
The divergent monetary policy direction between the BoJ and the Fed caused the USD/JPY pair to fall intraday below 154.00, opening the opportunity for the yen to strengthen further. This situation indicates that the currency market is highly sensitive to policy news and global volatility. (az)
Source: Newsmaker.id