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Indonesia News Portal for Traders | Financial & Business Updates

4 November 2025 09:44  |

Yen Weakens, What's Hampering JPY's Recovery?

The Japanese Yen (JPY) continues to weaken against the US Dollar (USD), which recorded significant gains in the Asian session on Tuesday (November 4th), reaching its highest level since February 12th. Market sentiment is being influenced by uncertainty regarding the timing of the Bank of Japan's (BoJ) next interest rate hike. Although BoJ Governor Kazuo Ueda signaled hawkish sentiment last week, suggesting a possible rate hike in December or January, investors remain hesitant as Japanese Prime Minister Sanae Takaichi plans to continue her aggressive fiscal spending policy, rejecting further tightening.

Furthermore, demand for safe-haven assets has begun to decline, exacerbating the JPY's weakness. Meanwhile, the US Dollar has strengthened, driven by diminishing expectations of a December interest rate cut by the US Federal Reserve. This movement has provided support for the USD/JPY currency pair, while speculation that the BoJ could intervene to address the yen's weakness has discouraged traders from aggressively betting on the Japanese currency. (az)

Source: Newsmaker.id

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