- The USD/JPY wins about 149.00 while the Japanese Yen weakens in the midst of an optimistic environment in the markets.
- This week, investors will focus on the monetary policy meeting of the BOJ and the Fed.
- The economic policies of US President Trump are expected to slow the economic perspectives.
The USD/JPY pair moves up to 149.00 in the American session on Monday. The pair wins while the Japanese Yen (JPY) works below his peers in the middle of a cheerful atmosphere in the markets. The attractiveness of risk assets has improved in the midst of optimism about peace conversations between the United States (USA) and Russia on Tuesday.
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 in front of the euro.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.22% | -0.24% | 0.03% | -0.41% | -0.42% | -0.93% | -0.34% | |
| EUR | 0.22% | -0.13% | -0.16% | -0.18% | -0.33% | -0.72% | -0.14% | |
| GBP | 0.24% | 0.13% | 0.29% | -0.26% | -0.22% | -0.60% | -0.08% | |
| JPY | -0.03% | 0.16% | -0.29% | -0.43% | -0.66% | -0.90% | -0.49% | |
| CAD | 0.41% | 0.18% | 0.26% | 0.43% | -0.22% | -0.52% | -0.48% | |
| Aud | 0.42% | 0.33% | 0.22% | 0.66% | 0.22% | -0.36% | 0.23% | |
| NZD | 0.93% | 0.72% | 0.60% | 0.90% | 0.52% | 0.36% | 0.58% | |
| CHF | 0.34% | 0.14% | 0.08% | 0.49% | 0.48% | -0.23% | -0.58% |
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).
Earlier in the day, White House officials confirmed that US President Donald Trump will talk to Russian leader Vladimir Putin about peace in Ukraine. Last week, Ukraine agreed to a high fire plan 30 days after conversations with US officials in Saudi Arabia. An end to the three -year war in Ukraine will restore the problems of the supply chain. Such scenario will be favorable for global economic growth.
In the domestic front, the main trigger for the Japanese Yen is the monetary policy decision of the Bank of Japan (BOJ) and the data of the National Consumer Price Index (CPI) of February, which are scheduled for Wednesday and Friday, respectively.
Although investors have supported the US dollar against Yen, it is working below its other peers amid fears that the tariff agenda of President Trump will slow down economic growth.
The Michigan consumer’s feeling index fell significantly 57.9 in March from 64.7 in February.
This week, investors will pay close attention to the Federal Reserve Interest Policy Decision (FED), which will be announced on Wednesday.
US dollar FAQS
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values ​​that overcome in new purchases. It is usually positive for the US dollar.
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.
