According to FXStreet, on 11.2, Nhat Yen (JPY) did not tend to be clear, fluctuating in a narrow range compared to the US dollar (USD). One of the main factors that help support the Yen is the expectation that the Central Bank of Japan (BOJ) will continue to raise interest rates. In addition, concerns about a global trade war also made investors come to JPY as a safe shelter.
However, US President Donald Trump's decision on imposing import taxes without exceptions is putting pressure on the Japanese economy. This reduces the attraction of the Yen, while the USD is inching up slightly. As a result, the USD/JPY exchange rate is still stable around 152.00.
Yesterday 10.2, President Trump signed a 25% tax order for steel and aluminum imported into the United States. This raises concerns about a trade war, causing investors to come to the Japanese Yen as a safe shelter.
On the other hand, BoJ leaders such as Governor Kazuo Ueda and Deputy Governor Himino recently suggested that they can continue to raise interest rates if the economic situation and inflation are in accordance with the forecast. Members of BoJ, Naoki Tamura, even proposed raising interest rates to 1% in the second half of the financial year (starting in April) to control inflation.
Many BoJ officials are also supporting the continuation of increasing interest rates due to inflation in Japan that surpassed the goal of 2% in nearly three years. This helps the peace to maintain its position, although investors are still observing.
Meanwhile, the market is concerned that Trump's policies can increase inflation in the US. If this happens, the US Federal Reserve (Fed) can maintain a tough stance, not rush to cut interest rates.
Currently, the focus of the market is the two -day hearing of President Jerome Powell before the National Assembly, starting today. This speech can provide clues about the Fed policy roadmap and affect the USD. In addition, US consumer inflation data published on Wednesday will also affect the USD/JPY exchange rate trend in the near future.
As noted by labor at 12h on 11.225, the yen fell to 151,966 USD/JPY, ie 1 USD was about 151 ~ 152 JPY.
