Japanese Yen Continues Weakening as Dollar Strengthens
The Japanese yen held steady around 153.5 per dollar on Tuesday after falling in the previous session, weighed down by a stronger dollar amid expectations that strong U.S. economic growth and aggressive trade policies under Trump will push inflation higher. At home, minutes from the Bank of Japan’s October policy meeting revealed a split among policymakers over the timing of future interest rate hikes.
Several members expressed concerns about global economic uncertainty and rising market volatility, particularly the ongoing yen depreciation. However, the central bank maintained its forecast that it could raise its benchmark interest rate to 1% in the second half of fiscal 2025. The yen’s continued weakness has prompted fresh verbal intervention from Japanese authorities, with Finance Minister Katsunobu Kato warning that Japan would take “appropriate measures” to address extreme fluctuations in the foreign exchange market.
Source: Trading Economics
