According to FXStreet, on October 23, the Japanese Yen (JPY) is under pressure against the US Dollar, falling to its lowest level since July 31, at around 151.75 in today's session.
The main reason for the decline was the uncertainty that the Bank of Japan (BoJ) might raise interest rates further this year. Although Japanese officials have warned of possible government intervention, this has not been enough to boost the JPY. Even rising tensions in the Middle East have not helped the JPY, which is often seen as a safe-haven asset, gain value.
In addition, US government bond yields rose to a three-month high, supporting the US dollar and adding further downward pressure on the JPY. The US dollar is also strengthening, with expectations that the US Federal Reserve will cut interest rates more slowly, making the JPY more vulnerable to further weakness.
San Francisco Fed President Mary Daly said the U.S. economy is more stable, inflation has fallen and the labor market is on a sustainable trajectory. In addition, there are signs that former President Donald Trump could win the upcoming U.S. election, raising concerns about new taxes that could increase inflation.
Looking ahead, traders are awaiting Tokyo consumer inflation data on Friday, October 25, which could be important for the JPY ahead of Japan's October 27 election and the BoJ's policy meeting on October 31.
According to Lao Dong, at 11:00 a.m. on October 23, the USD/JPY exchange rate is currently fluctuating between 151.02-151.84 JPY/USD.
