The Japanese yen is one of the weakest G10 currencies today, losing between 0.50-0.70% against other major currencies, as uncertainty surrounding the yen resurfaces.
In recent weeks, the effectiveness of verbal interventions by Japanese diplomats has diminished again. Currently, statements from leading politicians have virtually no impact on the exchange rate, with market sentiment from the first half of 2024 returning. For instance, the market's reaction to comments by Japan's Finance Minister Kato on Tuesday was significantly smaller than on Friday. If verbal interventions fail to produce the desired effect, more tangible actions from the Ministry of Finance may be required to influence the JPY effectively.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appThe USDJPY pair has climbed back above 155.5000 today, gaining 0.70%. Selling pressure on the yen may also be exacerbated by yesterday's escalation of the conflict in Europe between Russia and Ukraine, and the risk of further bombings in Ukraine today. This has heightened geopolitical risk, strengthening the USD and driving capital away from other markets. Additional upward pressure on USDJPY in recent weeks has stemmed from the U.S. elections, with a remarkably strong dollar playing a significant role. Furthermore, the risk of a U.S. pivot toward protectionist policies could impact international trade, including exports from Japan. Both external and internal factors are compounding the yen's depreciation.
_788809110e.png)
Source: xStation 5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
