Japanese Yen Drops to Lowest Level Since Late July
The Japanese Yen (JPY) edges higher against its American counterpart during the Asian session on Tuesday and reverses a part of the previous day's slide to the lowest level since late July. The recent verbal intervention from Japanese authorities, along with a slight deterioration in the global risk sentiment, turn out to be key factors offering some support to the safe-haven JPY. The upside for the JPY, however, seems limited on the back of the uncertainty over the timing and pace of further rate hikes by the Bank of Japan (BoJ).
Meanwhile, concerns about the potential for rising deficit spending after the November 5 US Presidential election and bets for a less aggressive policy easing by the Federal Reserve (Fed) pushed the US Treasury bond yields to their highest levels in almost three months. This might further contribute to capping any meaningful appreciating move for the lower-yielding JPY. Apart from this, the underlying bullish tone around the US Dollar (USD) supports prospects for the emergence of some dip-buying around the USD/JPY pair.
Source: FXStreet
