According to FXStreet, on October 10, the Japanese Yen (JPY) depreciated due to concerns that Japan could become the target of trade tariffs from US President Donald Trump. At the same time, the slight increase of the dollar also helps the USD/JPY pair to maintain a rise around 152.00.
However, JPY can hardly decrease further, because there are more and more expectations that the Central Bank of Japan (BOJ) will continue to raise interest rates this year. In addition, the Japanese government bond yield (JGB) increases higher, helping to narrow the interest rate gap between Japan and the US, which can limit the reduction of the yen. When there is no important economic data from the United States, investors are still waiting for a clearer signal before confirming whether USD/JPY will continue to increase.
US President Donald Trump has just announced that he will impose a 25% tax on steel and aluminum imported into the US, and can impose taxes on countries with trade policies that he thinks are unfair.
Concerns that these protection policies can increase inflation, along with strong US employment data last week, can cause the US Federal Reserve (Fed) to keep interest rates. This helps the dollar to maintain strength.
The US employment report shows that the unemployment rate drops to 4%, while the average hourly income increases stronger than expected 4.1%. However, the number of new jobs only reached 143,000 in January, lower than the prediction of 170,000 and the adjustment of 307,000 of the previous month.
Meanwhile, the International Monetary Fund (IMF) warns that Japan needs to monitor the impact of fluctuations in the global financial market, as this can affect the liquidity of financial institutions. domestic. The IMF also noted that the booster of interest rates may increase public debt costs and the risk of bankruptcy of businesses.
A senior BOJ official, Kazuhiro Masaki, said the central bank would continue to raise interest rates if inflation approached 2%. The data also shows that the actual salary in Japan has increased by 0.6% in December, marking the second month of growth - this strengthens the ability to continue to tighten monetary policy.
In addition, during the January meeting, BoJ members also discussed that they could continue to raise interest rates, which could support the Japanese Yen in the near future.
As noted by labor at 12am on 10.2.2025, the yen fell to 151,973 USD/JPY, ie 1 USD changed about 151 ~ 152 JPY.
