Yen Under Pressure, US Dollar Strengthens, What Will Happen Next?
The Japanese yen remains under pressure against the strengthening US dollar, reaching its lowest level since last February. Markets remain uncertain about when the Bank of Japan (BoJ) will raise interest rates, while Japan's new Prime Minister, Sanae Takaichi, is leaning towards continuing its massive fiscal spending policy and postponing policy tightening. This, despite strong inflation data in Tokyo, continues to pressure the yen.
Meanwhile, the US dollar remains strong near its highest level since August, driven by the Federal Reserve's hawkish stance, which increases the likelihood of further USD strengthening. Positive sentiment in global financial markets has also weakened the yen's appeal as a safe-haven currency. However, the risk of a prolonged US government shutdown and speculation of Bank of Japan intervention could limit further yen weakness. (az)
Source: Newsmaker.id
