Yen Nhat decreased slightly but there was no sign of deep reduction
On 7.2, Nhat Yen (JPY) decreased slightly after the International Monetary Fund (IMF) made cautious judgments, helping the USD/JPY pair recover from the lowest level since December 10. However, the sharp decline of JPY seems unlikely, because the market is increasingly believing that the Central Bank of Japan (BOJ) will continue to raise interest rates.
In fact, a senior BoJ official has recently emphasized that the bank still keeps the stance gradually increasing interest rates, helping to narrow the gap with other central banks such as the US Federal Reserve (FED). . This supports the yen and limits the decline. In addition, the US dollar value does not fluctuate strongly before the US employment data (NFP) is announced, contributing to keeping the USD/JPY pair stable.
Yen Nhat can continue to strengthen
The IMF warns that the Japanese should monitor the impact from boi raising interest rates, especially the risk of increasing government debt costs and the number of bankruptcy businesses.
A BoJ official confirmed that if inflation continues to increase with expectations, the bank will raise interest rates. The Japanese Economic Minister also said that the Government is focusing on eliminating reduction thinking, raising minimum wages and encouraging businesses to raise wages.
In addition, the report of BoJ earlier this week shows that policy makers are considering increasing interest rates in the future. The newly published data also shows that the actual salary in Japan increases in the second month in a row, the more the ability to strengthen the BoJ will continue to tighten the policy.
Meanwhile, the interest rate of Japanese government bonds for 10 years is close to the highest level in 14 years, while the 10 -year US bond yield is at the lowest level since December. This reflects the period of the period Hopefully the Fed may slow down the rate of interest rates.
The US Secretary of Finance said the government was not too worried about the Fed adjusting interest rates, but focusing on lowering long -term bond interest rates. Some Fed officials also stated that although inflation has decreased significantly, the US labor market is still strong, not eligible for the Fed to cut interest rates early.
Before the US employment data (NFP) was announced, many investors took profit and stood outside the market, causing the USD/JPY pair to have slight fluctuations during the day.
As noted by labor at 12am on 7.2.2025, the yen fell to 151,679 USD/JPY, ie 1 USD changed about 151 JPY.
