Japanese Yen trims part of intraday gains; Fed/BoJ decisions awaited
The post Japanese Yen trims part of intraday gains; Fed/BoJ decisions awaited appeared on BitcoinEthereumNews.com.
The Japanese Yen (JPY) attracts strong follow-through buyers for the second straight day and climbs to a one-week high against a softer US Dollar (USD) during the Asian session on Wednesday. Comments from Japan’s Economics Minister Minoru Kiuchi on Tuesday fueled speculations about a possible government intervention to stem further JPY weakness. Moreover, the outcome of a high-profile meeting between Japan’s new Prime Minister Sanae Takaichi and US President Donald Trump also contributes to the JPY’s relative outperformance. Meanwhile, supportive remarks from US Treasury Secretary Scott Bessent, along with bets for an imminent interest rate hike by the Bank of Japan (BoJ), provide an additional boost to the JPY. The USD, on the other hand, struggles to attract buyers amid dovish Federal Reserve (Fed) expectations and drags the USD/JPY pair closer to mid-151.00s in the last hour. The BoJ, however, could resist early tightening amid Takaichi’s aggressive fiscal spending plans. This might cap the JPY ahead of the crucial Fed rate decision and the BoJ policy meeting. Japanese Yen benefits from intervention fears and BoJ-Fed policy divergence On Wednesday, US Treasury Secretary Scott Bessent urged Japan’s government to allow the Bank of Japan policy space to keep inflation expectations anchored and avoid excess exchange rate volatility. The remarks revived market expectations that the US may continue to press Japan to tighten monetary policy more quickly. This follows a verbal intervention from Japan’s Economics Minister Minoru Kiuchi on Tuesday, emphasizing the importance of stable FX moves that reflect economic fundamentals. Kiuchi added that he plans to assess the impact of FX changes on Japan’s economy and that it is important to avoid rapid, short-term fluctuations. Furthermore, US President Donald Trump and Japan’s new Prime Minister Sanae Takaichi signed an agreement laying out a framework to secure mining and processing of rare…
