Results for: Japanese yen

Japan’s Chief Cabinet Secretary Hirokazu Matsuno has warned that the Japanese yen is approaching its highest levels in 34 years against the US dollar. The USD/JPY currency pair is currently trading near 155.40, close to the peak reached in 1988. Matsuno’s comments come amidst growing concerns about the yen’s rapid depreciation, which has been driven by a widening interest rate differential between Japan and the United States. The Bank of Japan has maintained an ultra-accommodative monetary policy, while the Federal Reserve has aggressively raised interest rates to combat inflation.

Bank of America (BoA) has issued a warning that the USD/JPY currency pair could rapidly climb to 160, citing the Bank of Japan’s (BoJ) limited ability to curb the yen’s rapid descent through communication alone. Despite the BoJ’s previous acknowledgment of the potential impact of a weakened yen on monetary policy and inflation, BoA believes that such statements are unlikely to provide sufficient support for the Japanese currency.

Japan Airlines (JAL) CEO Mitsuko Tottori has expressed concerns about the current weakness of the Japanese yen, stating that a stronger exchange rate of around 130 yen to the dollar would be more favorable for the airline. She emphasized that the majority of JAL’s expenses are in foreign currencies, making the weak yen a pressing issue. Tottori also highlighted the negative impact of the weak yen on outbound travel. Despite Airbus receiving a larger share of JAL’s recent aircraft order, Tottori emphasized that the airline will seek a balanced approach, ensuring that Boeing orders are delivered on time and meeting business requirements.

Traders remain cautious in the foreign exchange market, particularly regarding the USD/JPY pair. Speculation about potential intervention by the Bank of Japan (BOJ) is deterring aggressive activity, as traders await further guidance on Friday. The Australian dollar (AUD) has made slight gains, but AUD/USD remains limited. Analysts advise caution due to the high risk associated with yen trades. As traders observe the market, a gradual rise in prices is expected, potentially reaching 155.00. However, profit-taking and a possible overshoot could trigger intervention by Japan.

The Japanese Yen (JPY) has experienced a surge in value, reaching a daily high of 154.94. This notable increase has not gone unnoticed by Japanese authorities, who are monitoring the situation closely. Market analysts believe that the JPY’s rally could potentially overshadow other market developments, making it the primary focus of trading activity today.

European markets are trending upward today, buoyed by positive business activity indicators and a slight cooling in the U.S. economy. Tesla’s announcement of new models in the coming year has boosted its stock by 13% after-hours, despite a decline in profits and revenue. The Australian dollar has rebounded, reaching its 200-day moving average against the U.S. dollar due to an inflation surprise. However, the Japanese yen remains at 34-year lows, raising concerns about potential intervention from the government, similar to the action taken in 2022. Key events for the day include the release of the German Ifo survey, as well as earnings reports from companies such as Meta and Boeing.

Asian equity markets predominantly climbed on Tuesday, continuing the momentum from the previous session. This rally was influenced by a positive lead from Wall Street and eased concerns over a broader Middle East crisis. However, the Japanese yen faced a setback, weakening against the US dollar and reaching its lowest level in 34 years. Meanwhile, China announced the creation of over 3 million new urban jobs in the first quarter, while Hong Kong and India’s stock markets experienced gains. In Australia, private sector growth surpassed expectations, while U.S. stock futures showed a slight dip after a strong rebound in the previous session.

Japanese Finance Minister Shunichi Suzuki has warned that Japan may take action to stabilize the yen against excessive weakness, following a meeting with his U.S. and South Korean counterparts. This marks the strongest signal yet from Japan regarding potential intervention in the currency market.

Asian stocks rose on Tuesday, tracking Wall Street’s gains as investors awaited earnings reports from US tech giants. The MSCI Asia-Pacific ex-Japan index rose 0.5%, led by a jump in Taiwanese and Hong Kong shares. However, Chinese shares fell, with blue chips losing 0.6%. On Wall Street, big tech stocks performed well ahead of their quarterly results, with Nvidia, Amazon, and Alphabet gaining. Meanwhile, the Japanese yen fell to fresh 34-year lows against the US dollar, pressured by the widening interest rate gap between the US and Japan.

Asian shares advanced on Tuesday, tracking gains on Wall Street as investors turned their attention to upcoming earnings reports from US tech giants. The MSCI index of Asia-Pacific shares outside Japan rose 0.5%, buoyed by a surge in Taiwanese and Hong Kong stocks. Tech shares in the region performed well, while Chinese shares fell. The Japanese yen continued its decline, hitting fresh 34-year lows against the US dollar amid a diverging monetary policy outlook between the US and Europe. Oil prices recovered slightly, while gold prices declined.