Yen under pressure from strong USD
According to FXStreet, on December 4, the Japanese Yen (JPY) depreciated in the context of the USD strengthening thanks to positive US economic data. The manufacturing PMI index and employment figures showed that the US economy remained stable, significantly supporting the value of the USD.
However, the market also predicts that the Bank of Japan (BOJ) may raise interest rates this month, which could provide support for the JPY in the short term.
In addition to pressure from the USD, international events such as political unrest in France, tensions in South Korea and rising conflicts in the Middle East have increased demand for safe assets such as the Japanese Yen.
This could give the JPY further advantage over the USD in the near future. Investors are now focused on US economic reports, including ADP employment data, services PMI and the Beige Book report from the Fed, along with a speech by Chairman Jerome Powell later in the day.
Japanese and World Financial Markets
In Japan, the Nikkei 225 index opened slightly up 0.15%, while South Korea's Kospi index fell sharply by 1.97% after a recent martial law proposal was rejected by the National Assembly.
Japan's services PMI came in at 50.5 in November, beating expectations of 50.2, indicating a slight improvement in the services sector. BOJ Governor Kazuo Ueda stressed that the bank is ready to ease monetary easing if inflation reaches its 2% target.
US data strengthens the dollar
According to the JOLTS report from the US Bureau of Labor Statistics (BLS), the number of job vacancies increased from 7.37 million to 7.74 million in October, far exceeding market expectations. This shows that the US labor market remains strong.
Fed Governor Adriana Kugler said inflation was approaching the 2% target but stressed that policy remained flexible. San Francisco Fed President Mary Daly said a December rate cut was not a certainty. Meanwhile, Chicago Fed President Austan Goolsbee predicted that interest rates would fall significantly by 2025.
Currently, the USD has an advantage over the JPY thanks to the strength of the US economy. However, BOJ policies, international uncertainties, and Fed decisions will continue to strongly influence the exchange rate in the coming time.
According to Lao Dong, updated at 2:00 p.m. on December 4, the USD/JPY exchange rate is currently fluctuating around 150,074 USD/JPY, meaning 1 USD can be exchanged for about 150 JPY, down 0.34% compared to yesterday's session.
Update the latest Yen exchange rate HERE.
