Japanese Yen Gains on Dollar Weakness
The Japanese yen strengthened past 148 per dollar on Thursday, recovering from the prior session’s losses as the greenback retreated after soft US jobs data reinforced expectations of Federal Reserve rate cuts.
On the domestic front, Bank of Japan Governor Kazuo Ueda reiterated Wednesday that the bank’s policy stance on rate hikes remains unchanged if growth and inflation progress as anticipated. Investors now await Friday’s wage data for further policy guidance. Still, the yen briefly touched a one-month low on Wednesday as political uncertainty weighed on sentiment.
Ruling party secretary general Hiroshi Moriyama, a close ally of Prime Minister Shigeru Ishiba, announced his resignation, fueling speculation over Ishiba’s future as pressure mounts following an election setback. Among the leading contenders to succeed him, Sanae Takaichi is viewed as favoring continued low interest rates.
Source: Trading Economics