- The Japanese Yen extends his winning streak to five consecutive days against the US dollar amid risk aversion flows.
- Moody’s reduces the US credit rating, weighing strongly over the US dollar with the DXY index approaching 100.00.
- The BOJ indicates more rates increases if the recovery remains on the right path.
The Japanese Yen (JPY) extends his winning streak against the US dollar (USD) on a fifth consecutive day on Monday, with the USD/JPY falling below the psychological brand of 145.00 to operate about 144.70 during the European session, driven by a generalized weakness of the USD and new hard line signals of the Bank of Japan (BOJ).
On Friday afternoon, Moody’s ratings reduced the long -term long -term credit rating of the US in a step – to “AA1” from “AAA” – citing persistent concerns about the growing fiscal deficit of the country and the increasing debt, which recently exceeded the mark of the 36 billion dollars.
“The successive US administrations and Congress have failed to agree measures to reverse the trend of large annual tax deficits and growing interest costs,” Moody’s said in the report.
Despite the reduction, the US Treasury Secretary, Scott Besent, minimized its importance, saying in an interview with CNN, “I do not give Moody’s much credibility,” reflecting the continuous confidence of the administration in the resilience of the US economy.
The reduction weighed strongly over the dollar, pushing the US dollar index (DXY) near the 100.00 mark, reinforcing the bearish feeling in the main pairs of the USD.
Meanwhile, the Japanese Yen receives support from the hard line comments of the vice governor of the Boj, Shinichi Uchida. Speaking to Parliament, Uchida said that the BOJ will continue to increase interest rates if the economy recovers from the expected impact of US tariffs.
“If our forecast materializes, we will continue to increase our policy rate,” said Uchida. However, he warned that the perspective remains clouded by “extremely high uncertainty” around global commercial policy and its broader economic impact. “We will determine without preconception if the economy and prices move in line with our forecast,” he added, according to Reuters.
Uchida’s comments reinforce the cautious but hard line of the Boj, contrasting markedly with the growing moderate inclination in US monetary policy expectations. The Japanese Yen has gained traction in recent days as investors reevaluate the macroeconomic perspective of the US.
Looking forward today, the operators will closely monitor the speeches of the Federal Reserve officials (FED), including the president of the Fed of New York, John Williams, to obtain information on the policy perspective of the Central Bank. In the Japanese front, the Ministry of Finance is ready to publish data from the Balance on Wednesday, and the Statistics Office will publish the Consumer Price Index (IPC) on Friday.
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 US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -1.04% | -0.76% | -0.32% | -0.18% | -0.63% | -0.54% | -0.47% | |
| EUR | 1.04% | 0.03% | 0.56% | 0.69% | 0.31% | 0.33% | 0.34% | |
| GBP | 0.76% | -0.03% | 0.23% | 0.66% | 0.28% | 0.31% | 0.32% | |
| JPY | 0.32% | -0.56% | -0.23% | 0.13% | -0.16% | -0.03% | -0.10% | |
| CAD | 0.18% | -0.69% | -0.66% | -0.13% | -0.44% | -0.36% | -0.35% | |
| Aud | 0.63% | -0.31% | -0.28% | 0.16% | 0.44% | 0.02% | 0.05% | |
| NZD | 0.54% | -0.33% | -0.31% | 0.03% | 0.36% | -0.02% | 0.02% | |
| CHF | 0.47% | -0.34% | -0.32% | 0.10% | 0.35% | -0.05% | -0.02% |
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).
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.
