Japan's Ministry of Finance plans to raise its assumed long-term interest rate to 1.5% for the fiscal year 2024/25, up from the current record-low of 1.1%, indicating a potential strain on the country's budget as it is set to exceed 114 trillion yen ($782.64 billion).
The US dollar weakened slightly against major peers as traders awaited a speech from Federal Reserve Chair Jerome Powell, while the yen pulled away from a nine-month low and China's yuan briefly rose following attempts to bolster the currency.
Japan will only intervene in the currency market if the yen drops below 150 to the dollar and becomes a major political issue for Prime Minister Fumio Kishida, according to a former central bank official involved in Japan's past market interventions.
The US dollar remains strong against major peers and the yen, as Treasury yields rise amid expectations of high US interest rates for a longer period, while China's central bank sets a stronger-than-expected daily midpoint for the yuan to counter mounting pressure on the currency.
Japanese and Chinese central banks have significantly reduced their holdings of US Treasury bonds, making it less likely that their interventions in the foreign exchange market would disrupt global markets or strike fear into bond investors.
The US dollar was cautious as traders awaited economic data, while the yen struggled near intervention levels as the dollar remained strong.
The USD/JPY spiked to a cycle high but reversed course, while weak labor market figures were reported in both the US and Japan, supporting the dovish stance of the Bank of Japan.
The yen's weakness against major currencies is driving up import costs in Japan, leading to higher prices for necessities like energy and food.
The yen rebounded from a 10-month low against the dollar after Japan issued a strong warning about sharp currency moves, increasing the likelihood of government intervention if the slump continues.
Tokyo stocks rise as a cheaper yen supports the market, despite falls on Wall Street and concerns about another US Federal Reserve interest rate hike.
The Japanese yen has reached a 10-month low against the US dollar, while the euro and sterling remain near three-month lows, as investors show confidence in the US economy despite global growth concerns.
The dollar strengthens against the yen and keeps the euro and sterling near three-month lows as investors rely on the resilience of the U.S. economy, while China's onshore yuan hits a 16-year low due to a property slump and weak consumer spending.
Asian currencies, including the Japanese yen and the Singapore dollar, are trading against the US dollar with varied movements, while the year-to-date percentage changes for the currencies show fluctuations.
Asian equities face a cautious start to trading while the yen strengthens following potentially hawkish remarks from the Bank of Japan governor, with futures for Australia slightly higher, US-listed Chinese stocks falling, and contracts for Japan showing a small gain.
The yen strengthened and government bonds slumped as traders reacted to potentially hawkish comments from Bank of Japan Governor Kazuo Ueda on the negative interest rate policy, causing Japanese bank shares to jump and the benchmark bond yield to rise.
Asian currencies saw mixed movements against the US dollar, with the Japanese yen and Singapore dollar strengthening, while the Taiwanese dollar and Indonesian rupiah weakened.
The Bank of Japan has signaled a possible early end to its easy money stance, with the central bank considering interest rate hikes and an early end to its bond-buying policy, which caught markets off guard and caused the yen to surge and Japanese government bond yields to reach a 9-year high.
Japanese long-term interest rates and the yen rose after Bank of Japan Governor Kazuo Ueda hinted at the possibility of ending the bank's negative interest rate policy.
The Bank of Japan's potential shift away from negative interest rate policy has ignited the Japanese Government Bond and currency markets, with the yen seeing its biggest rise in two months and the 10-year JGB yield reaching its highest point in almost a decade.
Japan's ruling party lawmaker Hiroshige Seko supports maintaining an ultra-loose monetary policy, following comments by the Bank of Japan governor that caused the yen and bond yields to rise.
The Indian Rupee is weakening against the US dollar, causing concern for Indian authorities who fear that it could impact the country's import and export sectors, with suspicions that India may be taking measures to limit the dollar's growth; similarly, other BRICS member countries like China and Japan are also trying to curb the US dollar's growth.
The dollar remains steady ahead of a key U.S. inflation report, but rises against the yen as traders digest comments from Japan's central banker on a possible early exit from negative interest rates.
Speculation is growing that the Bank of Japan may be moving away from ultra-loose policy and negative interest rates, with its policy meeting being the highlight of the week in Asian markets.
Asian currencies are experiencing slight fluctuations against the US dollar, with the Japanese yen, Singapore dollar, and Taiwan dollar showing small movements.
The US dollar remains stable in Asian trades as the yen and sterling experience slight fluctuations due to upcoming central bank meetings, including the Bank of Japan's policy meeting, the US Federal Reserve's hawkish pause, and the Bank of England's possible interest rate increase.
The Bank of Japan is expected to maintain ultra-low interest rates and reassure markets that monetary stimulus will continue amidst China's economic struggles and the global impact of US interest rates.
The US dollar remained strong against other currencies as traders awaited the Federal Reserve's rate decision, while the yen hovered near a 10-month low amidst speculation of intervention.
The yen's purchasing power has reached a historic low as it continues to depreciate against the dollar and other currencies, leading to higher travel and import costs for Japanese.
The Japanese yen weakened and stocks and bonds remained under pressure as investors prepared for U.S. interest rates to remain high, despite the Bank of Japan sticking to ultra-easy monetary policy and making no changes to its outlook.
The yen weakened against the dollar as the Bank of Japan announced it would maintain its accommodative monetary policy, with little indication of rolling it back.
Monetary policy differences between the Federal Reserve and the Bank of Japan will continue to impact the Japanese yen, with the US dollar maintaining its strength, while key levels to watch for USD/JPY are discussed in this article.
The Japanese yen is approaching the key level of 150 per dollar, increasing the likelihood of forex intervention by Japanese authorities, while the US dollar continues its gains after the Federal Reserve signaled a longer period of higher interest rates.
Asian currencies showed mixed movements against the US dollar, with the Japanese yen slightly down, the Singapore dollar up, and the Taiwanese dollar unchanged, among others; overall, there has been varied performance in currency rates across the region in 2023 so far.
Investors are concerned about possible intervention as the yen approaches 150 per dollar, but the Bank of Japan may find it difficult to justify and achieve currency support due to the hesitation in exiting an ultra-easy monetary policy and the commitment to market-determined exchange rates.
Japanese stocks soar as the yen reaches its lowest point in nearly a year and the US avoids a government shutdown, while other equity markets in the region remain mixed.
The Bank of Japan is considering the eventual end of its ultra-loose monetary policy, with some policymakers discussing the conditions and timing of a future exit, according to a summary of opinions from their September meeting, leading to a rise in government bond yields.
The dollar rose due to expectations of higher U.S. interest rates, while the yen reached a one-year low, leading to concerns about intervention by Japanese authorities; the euro and pound also fell, while the U.S. Congress passed a funding bill to avoid a government shutdown.
Gold and silver prices are falling due to a strong U.S. dollar, rising U.S. Treasury yields, and upbeat risk attitudes, while Asian and European stocks are mixed, and the Bank of Japan is monitoring the depreciation of the yen against the U.S. dollar.
The weak yen has improved business sentiment at Japanese companies, with the overall mood boosted by a more favorable supply chain and an influx of tourists from abroad, according to the Bank of Japan's latest quarterly Tankan survey.
Traders remain wary as the yen approaches 150 per dollar and the strong dollar dominates, leading to low risk appetite and a lower open in European markets.
The yen briefly fell below 150 against the dollar despite efforts by the Japanese government to prevent the decline, as investors anticipate the U.S. Federal Reserve to maintain high interest rates.
