Yen exchange rate today
According to Lao Dong, on August 11, the Japanese Yen (JPY) recorded a slight increase compared to the USD, as the greenback was under selling pressure and expected the Bank of Japan (BoJ) to soon raise interest rates to continue supporting the market.
Despite the widespread risk-off sentiment and the Asian stock market, US stock futures have improved, reducing demand for safe-haven assets such as the JPY, but the currency is still rising as the USD weakens. The greenback is currently hovering near a two-week low, after investors raised their bet on the possibility of the Fed cutting interest rates in September.
Yen continues to struggle
According to FXStreet, the contrast in policy orientation between the BoJ and the Fed is the main factor supporting the JPY. Analysts believe that the BoJ may raise interest rates before the end of the year, while the Fed is expected to start an easing cycle, reducing pressure on the Yen. In addition, cautious sentiment ahead of the meeting between US President Donald Trump and Russian President Vladimir Putin on Friday in Alaska to discuss Ukraine also contributed to the JPY maintaining its upward momentum, keeping the USD/JPY exchange rate below 147.80.
In the Asia session, the JPY continued to maintain its position in a higher price range than last week. After the July meeting, the BoJ left open the possibility of continuing to normalize policy. Although the newly released "Summary of Opinions" report shows planners are concerned about the negative impact of the US increasing import tariffs, the market still believes that interest rates will be adjusted sooner than expected.
On the other hand, the USD depreciated more strongly after Fed Governor Michelle bowman's "dowes" speech on Saturday, that the three interest rate cuts this year are reasonable as the labor market weakens. Traders are now pricing in a nearly 90% chance of a rate cut in September.
