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Indonesia News Portal for Traders | Financial & Business Updates

15 October 2024 11:33  |

Japanese Yen Looks Vulnerable Against USD, Holds Near Lowest Level Since Early August

The Japanese Yen (JPY) is trying to preserve modest Asian session gains against its American rival and is down near its lowest level since early August hit on Monday.

Investors have been scaling back their expectations for any further interest rate hikes by the Bank of Japan (BOJ) in 2024. This, along with the prevailing risk-on environment, turned out to be key factors that undermined demand for the JPY as a safe-haven.

Meanwhile, firming expectations for less aggressive policy easing by the Federal Reserve (Fed) and bets for another 25 basis points (bps) interest rate cut in November kept the US Treasury bond yields elevated.

This helped the US Dollar (USD) hold higher near two-month tops and contributed to capping the upside for the lower-yielding JPY, lifting the USD/JPY pair back closer to the psychological 150.00 level in the last hour.

Source: FXStreet

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