- The USD/JPY rises with force about 148.00 since Japan is unlikely to avoid tariffs by the USA.
- An expected increase in US Jolts job offers data for January has offered temporary support to the US dollar.
- Both the general CPI and the U.S. underlying are estimated to be slowed in February.
The USD/JPY pair recovers with force about 148.00 in the negotiation hours of North America on Tuesday, after registering a new minimum of five months of 146.50 earlier in the day. The pair bounces while the Japanese Yen (JPY) collapses after the comments of the Minister of Commerce of Japan, Yoji Muto, who indicated that Japan could not escape the tariffs of the United States (USA).
And in Japanese price today
The lower table shows the rate of change of Japanese Yen (JPY) compared to the main currencies today. Yen Japanese was the strongest currency against the Canadian dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.74% | -0.40% | 0.21% | 0.31% | -0.08% | -0.11% | -0.19% | |
| EUR | 0.74% | 0.35% | 0.93% | 1.05% | 0.67% | 0.64% | 0.56% | |
| GBP | 0.40% | -0.35% | 0.61% | 0.70% | 0.32% | 0.28% | 0.22% | |
| JPY | -0.21% | -0.93% | -0.61% | 0.08% | -0.31% | -0.34% | -0.40% | |
| CAD | -0.31% | -1.05% | -0.70% | -0.08% | -0.38% | -0.41% | -0.48% | |
| Aud | 0.08% | -0.67% | -0.32% | 0.31% | 0.38% | -0.02% | -0.02% | |
| NZD | 0.11% | -0.64% | -0.28% | 0.34% | 0.41% | 0.02% | -0.07% | |
| CHF | 0.19% | -0.56% | -0.22% | 0.40% | 0.48% | 0.02% | 0.07% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Japanese yen from the left column and move along the horizontal line to the US dollar, the percentage change shown in the picture will represent the JPY (base)/USD (quotation).
“We did not receive a response that Japan would be exempt,” Muto said after meetings with the secretary of Commerce Howard Lutnick, the US trade representative Jamieson Greer and the economic advisor of the White House Kevin Hasset, reports Reuters. Muto added that the US recognized the contribution of Japanese companies to their economy, but refused to elaborate on the position of their counterparts. Japan is the fourth largest commercial partner in the US and tariffs on Japan would decrease the competitiveness of Japanese products worldwide.
The fears of Trump tariffs are expected to force the operators to reassess the expectations that the Bank of Japan (BOJ) increase the interest rates again this year.
Meanwhile, the US dollar (USD) has found a temporary mattress after having registered a new minimum of four months after the publication of US Jolts employment offers data for January. The US Labor Statistics Office (BLS) reported that business owners published 7.74 million jobs, almost in line with estimates, exceeding 7.51 million seen in December. The US dollar index (DXY), which follows the value of the dollar against six main currencies, remains almost 0.35% about 103.50.
Looking ahead, investors will focus on the US Consumer Price Index (CPI) for February, which will be published on Wednesday. It is estimated that the general year -on -year inflation data has grown by 2.9%, slower than 3% in January. In the same period, the underlying IPC is expected to exclude volatile food and energy prices – 3.2% of the previous 3.3% publication has been decelerated.
And in Japanese faqs
The Japanese Yen (JPY) is one of the most negotiated currencies in the world. Its value is determined in general by the march of the Japanese economy, but more specifically by the policy of the Bank of Japan, the differential between the yields of the Japanese and American bonds or the feeling of risk among the operators, among other factors.
One of the mandates of the Bank of Japan is the currency control, so its movements are key to the YEN. The BOJ has intervened directly in the currency markets sometimes, generally to lower the value of YEN, although it abstains often due to the political concerns of its main commercial partners. The current ultralaxy monetary policy of the BOJ, based on mass stimuli to the economy, has caused the depreciation of the Yen in front of its main monetary peers. This process has been more recently exacerbated due to a growing divergence of policies between the Bank of Japan and other main central banks, which have chosen to abruptly increase interest rates to fight against inflation levels of decades.
The position of the Bank of Japan to maintain an ultralaxa monetary policy has caused an increase in political divergence with other central banks, particularly with the US Federal Reserve. This favors the expansion of the differential between the American and Japanese bonds to 10 years, which favors the dollar against Yen.
The Japanese Yen is usually considered a safe shelter investment. This means that in times of tension in markets, investors are more likely to put their money in the Japanese currency due to their supposed reliability and stability. In turbulent times, the Yen is likely to be revalued in front of other currencies in which it is considered more risky to invest.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
