Yen exchange rate today
According to Lao Dong, on August 5, the Japanese Yen (JPY) continued to weaken against the US Dollar (USD), pushing the USD/JPY pair to hold firmly above 147.00.
However, the decline of the Japanese Yen is being held back by many factors, causing sellers to be cautious and not dare to increase their selling orders.
Japanese Yen has not lost momentum
According to FXStreet, the minutes of the Bank of Japan's (BoJ) June meeting, released this morning, showed that most members still maintain the view of not adjusting interest rates in a short-term manner due to the uncertainty in the global environment.
However, the BoJ also stressed its readiness to raise interest rates further if economic growth and inflation continue to move in the right direction. This information has caused investors to start to have more expectations about the possibility of the BoJ taking action later this year.
In addition, Japan services PMI data for July continued to record growth reaching 53.6 points, higher than the preliminary and previous month showing that the economy is still recovering positively. The composite PMI also increased slightly to 51.6 points, marking the fastest business expansion rate since February.
However, the USD's increase against the JPY in today's session was not too strong due to expectations that the US Federal Reserve (Fed) will start cutting interest rates from September. These expectations became more evident after last week's US jobs report showed signs of a slowing labor market. According to CME Group's FedWatch tool, the possibility of the Fed cutting interest rates in September is now up to more than 80%.
At the same time, recent political events in the US such as President Donald Trump's surprise request to fire the head of the Bureau of Labor Statistics and the resignation of Fed Governor Adriana Kugler have also raised market concerns about political pressure on the Fed, reducing the attractiveness of the USD.
