Yen Sinks to 4-Month Low as USD/JPY Surges Before Key US Jobs Report
The Japanese Yen (JPY) dropped to its lowest level in four months against the US Dollar (USD) as the USD/JPY pair continued to rise during Thursday’s Asian session. The yen remains weak as traders focus on the upcoming US Nonfarm Payrolls (NFP) report, which is expected to give more clues about the strength of the US economy.
Although the Bank of Japan (BoJ) raised its inflation forecast and gave a better outlook for the economy, it still kept its tone soft. BoJ Governor Kazuo Ueda said the bank is not in a rush to raise interest rates. This made investors less confident about the yen.
At the same time, the US Dollar stayed strong after President Donald Trump announced new tariffs on many countries, going as high as 41%. This has increased global uncertainty but helped support the USD.
The Federal Reserve’s recent policy stance also supported the dollar. The Fed signaled it may not cut rates soon, which keeps the US Dollar firm. Investors are now waiting for the NFP data, which could push the dollar even higher if job numbers are strong.
Meanwhile, Japan’s Finance Minister raised concerns about the yen’s fast fall, blaming it on speculation in the market.
Impact:
If US job data is strong, USD/JPY might rise further. The yen could stay under pressure unless Japan changes its policy stance or takes action to support it.
