Yen exchange rate today
According to Lao Dong, on September 3, the Japanese Yen (JPY) continued to weaken and just hit a one-month low against the US Dollar (USD).
Despite a technical recovery in the Asian session, the overall trend of the Yen is still negative, reflecting the domestic political context of instability and the absence of strong signals from the Bank of Japan (BoJ).
One of the main reasons for the Yen's pressure is the statement of BoJ Deputy Governor Ryozo Himino on September 2.
He said the central bank needs to continue raising interest rates, but also warned that global economic instability is still very large, so the BoJ is not in a hurry to tighten policy. This is understood by the market as the BoJ will maintain a slow rate increase, making the Yen less attractive than the USD.
At the same time, the Japanese political situation has added to the pressure. LDP party secretary general Hiroshi Moriyama, a figure close to Prime Minister Shigeru Ishiba, has announced his intention to resign. At the same time, former Prime Minister Aso Taro called for a new presidential election for the LDP. These developments have raised concerns about instability in Japanese policy, negatively affecting investor sentiment and the Yen.
Meanwhile, in the opposite direction, the USD continues to strengthen. The global market is looking for a safe haven, adding expectations that the Fed may cut interest rates in September but still maintain a stable policy. The USD therefore maintains an upward trend, helping the USD/JPY pair maintain its upward momentum and approach the important technical resistance level of the 200-day moving average.
