The information provided is of general nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information provided, you should consider whether the information is suitable for you and your personal circumstances and if necessary, seek appropriate professional advice. All opinions, conclusions, forecasts or recommendations are reasonably held at the time of compilation but are subject to change without notice. Past performance is not an indication of future performance. Go Markets Pty Ltd, ABN 85 081 864 039, AFSL 254963 is a CFD issuer, and trading carries significant risks and is not suitable for everyone. You do not own or have any interest in the rights to the underlying assets. You should consider the appropriateness by reviewing our TMD, FSG, PDS and other CFD legal documents to ensure you understand the risks before you invest in CFDs. These documents are available here.
Any references to Australian or international shares, sectors, indices, ETFs, crypto-related stocks or other instruments are provided for market commentary and watchlist purposes only and do not constitute a recommendation, offer or solicitation to buy, sell or hold any financial product or adopt any investment strategy. International markets may involve additional risks, including currency fluctuations, regulatory differences, market structure differences, reduced liquidity and higher volatility. Company-specific, sector-specific and macroeconomic risks may also affect performance.
Commentary on geopolitical developments, economic data, central bank decisions, earnings, policy changes and other global or financial market events is based on information available at the time of publication and may change without notice. Such events can lead to sudden market moves, price gaps, reduced liquidity, wider spreads and increased volatility, particularly in leveraged products such as CFDs. Forward-looking statements, expectations and scenario analysis are inherently uncertain and should not be relied on as guarantees of future market behaviour or outcomes.
Japanese Yen weakens toward 160 as US inflation bolsters Fed hike bets
- USD/JPY hits a two-month low 2 as stronger-than-expected US inflation and hawkish Fed remarks lift the US Dollar.
- Markets fully price in a December Fed rate hike, with an 11.5% chance of a half-point move.
- The wide US–Japan interest rate gap weighs on the Japanese Yen, but the risk of another intervention keeps traders cautious.
USD/JPY edges higher on Wednesday, extending gains for the second straight day as expectations of a more hawkish Federal Reserve (Fed) outlook renew bullish momentum in the US Dollar (USD). At the time of writing, the pair trades around 159.13, up 0.24% on the day, its highest level since September 2.
Stronger-than-expected US consumer inflation data released on Tuesday, along with calls from Fed officials for further monetary policy tightening, have strengthened the Greenback. The US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, trades around 102.50, approaching the year-to-date high of 102.94 reached in October.
The US Consumer Price Index (CPI) rose 0.4% MoM in October, above the 0.3% forecast but down from 0.6% in September. Core CPI, which excludes food and energy, rose 0.3%, matching September’s pace and beating the 0.2% forecast.
Fed Governor Christopher Waller said a half-point rate hike may be needed in December if October core CPI comes in “around 0.3% or higher.” Other officials, including Dallas Fed President Lorie Logan and Philadelphia Fed President Anna Paulson, also backed further monetary tightening, while Fed Vice Chair for Supervision Michelle Bowman stressed the need to bring inflation under control.
Markets now fully price in a rate hike in December, with an 88.5% chance of a 25-basis-point (bps) increase and an 11.5% chance of a 50 bps move, according to the CME FedWatch Tool. Traders also expect more rate hikes next year, with three additional quarter-point increases priced in by mid-2027.
Meanwhile, the Japanese Yen (JPY) struggles as interest rates in Japan remain well below those in the US, with the Bank of Japan’s (BoJ) policy rate at 1.25%, compared with the Fed’s 3.75%-4.00% range. Although the BoJ remains on a gradual rate-hiking path, this offers limited support to the Yen, as prospects of further Fed tightening could keep the interest rate gap between the two countries wide.
Nevertheless, the risk of another currency intervention keeps traders cautious as USD/JPY approaches the 160 mark. Japan has already stepped into the market several times this year to support the Yen, including a record ¥7.98 trillion intervention on July 30. Finance Minister Satsuki Katayama warned earlier this month that authorities would act against disorderly or excessively speculative currency movements.
Japanese Yen Price Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the weakest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.24% | 0.25% | 0.24% | 0.31% | 0.06% | 0.28% | 0.49% | |
| EUR | -0.24% | 0.00% | 0.00% | 0.05% | -0.19% | 0.06% | 0.25% | |
| GBP | -0.25% | -0.01% | -0.02% | 0.05% | -0.22% | 0.03% | 0.24% | |
| JPY | -0.24% | 0.00% | 0.02% | 0.06% | -0.18% | 0.04% | 0.25% | |
| CAD | -0.31% | -0.05% | -0.05% | -0.06% | -0.24% | -0.02% | 0.19% | |
| AUD | -0.06% | 0.19% | 0.22% | 0.18% | 0.24% | 0.24% | 0.44% | |
| NZD | -0.28% | -0.06% | -0.03% | -0.04% | 0.02% | -0.24% | 0.21% | |
| CHF | -0.49% | -0.25% | -0.24% | -0.25% | -0.19% | -0.44% | -0.21% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
Related Articles
