Yen exchange rate today
According to Lao Dong, on September 23, the Japanese Yen (JPY) increased, bringing the USD/JPY exchange rate to around 147.75. This recovery comes as investors adjust expectations after a series of statements from officials of the US Federal Reserve (Fed).
Last week, the Fed cut interest rates as expected but affirmed that it was not in a hurry to continue to ease strongly. Chairman Jerome Powell called it a risk management step, in response to a weakening labor market while inflation remains above target. These statements have caused the USD to lose strength, creating conditions for the Yen to benefit.
Yen is still weak
However, according to FXStreet, the Yen's increase is not really sustainable. Some Fed officials still show mixed views: Fed Chairman St. Louis Alberto Musalem supports a rate cut as a preventative measure, but warns that there is much room for further cuts. Meanwhile, Governor Stephen Miran even said that the 0.25 percentage point reduction was too small and the Fed should act more drastically. These debates have caused a lot of market instability, affecting the long-term trend of the Yen.
In the country, the Yen continues to be pressured by political factors. The October 4 election for the leadership of the Liberal Democratic Party (LDP) has caused the Bank of Japan (BoJ) to be cautious about decisions to raise interest rates. This reservation could weaken the Yen's outlook in the short term, even as the USD weakens.
In that context, investors are expected to closely monitor US Manufacturing and Services PMI data and Chairman Jerome Powell's upcoming speech. These will be key factors that determine whether the Yen can maintain its recovery momentum or continue to be pressured by policies and the internal political situation of Japan.
