According to FXStreet, on October 17, the Japanese Yen (JPY) is weakening against the US Dollar (USD), remaining near its lowest level since August.
Currently, the Japanese Yen (JPY) is having difficulty recovering, despite a slight increase in the trading session over the past 2 days.
Accordingly, Japan's exports in September fell for the first time in 10 months, showing that consumer demand is weakening.
Japan’s exports fell 1.7% year-on-year in September, missing market expectations, as demand from China and the US slowed. That complicates the BoJ’s plans to raise interest rates and limits the yen’s upside potential, although geopolitical risks in the Middle East could provide some support for the yen.
Japanese Prime Minister Shigeru Ishiba's opposition to further interest rate hikes has added to the confusion over the Bank of Japan's (BoJ) plans to end its years-long monetary easing policy.
A majority of economists believe the BoJ will not raise interest rates again this year due to a change in political leadership and unclear monetary policy priorities, according to a Reuters survey.
Additionally, positive sentiment in the stock market is putting pressure on the yen, which is often seen as a safe haven in times of uncertainty.
Meanwhile, the US dollar remains very strong. The US dollar rose to its highest level since August yesterday, October 16, on expectations that the Fed will not cut interest rates too sharply and may implement a 25 basis point cut at its November meeting.
This helped the 10-year US Treasury yield stay above 4%, providing strong support for the USD and pushing USD/JPY higher. Traders are now waiting for more economic data from the US, such as retail sales, unemployment figures and manufacturing index, for further clues on market trends.
According to Lao Dong, at 2:00 p.m. on October 17, the USD/JPY exchange rate is currently fluctuating between 149.24-149.66, meaning 1 USD is equivalent to about 149.5 Japanese Yen.
