As traders evaluate market sentiment regarding the BoJ's January interest rate hike, the USD/JPY depreciates.
In 2024, the Japanese yen is predicted to fall more than 10% versus the US dollar.
The 2-year and 10-year US Treasury yields dropped by about 2% on Monday, closing at 4.24% and 4.53%, respectively.
The USD/JPY is trading at about 156.20 in early European hours on Tuesday, continuing its losses for the third straight session on New Year's Eve. But in 2024, the Japanese yen (JPY) is expected to fall more than 10%, which would be the fourth consecutive year that it has lost value relative to the US dollar (USD).
The USD/JPY is trading at about 156.20 in early European hours on Tuesday, continuing its losses for the third straight session on New Year's Eve. But in 2024, the Japanese yen (JPY) is expected to fall more than 10%, which would be the fourth consecutive year that it has lost value relative to the US dollar (USD).
As traders continue to gauge market sentiment that the Bank of Japan (BoJ) may raise interest rates in January following the release of the Tokyo Consumer Price Index (CPI) inflation data last week, the improved Japanese Yen (JPY) is blamed for the decline in the USD/JPY pair.
The headline Tokyo CPI inflation rate increased from 2.6% in November to 3.0% YoY in December. In the meantime, the Tokyo CPI, which does not include Fresh Food and Energy, rose 2.4% YoY from 2.2% the month before. In addition, the Tokyo CPI excluding fresh food increased 2.4% year over year, which was higher than the 2.2% recorded in November but slightly less than the anticipated 2.5%.
The USD/JPY pair also faces difficulties as the US dollar declines in value due to declining Treasury yields. US Treasury bond yields dropped about 2% on Monday, and the US Dollar Index (DXY), which compares the USD to six major currencies, is still soft at 108.00 in the morning. The yields for the next two and ten years were 4.24% and 4.53%, respectively.
Since the Federal Reserve (Fed) may take a more cautious stance on possible rate cuts in 2025, indicating a change in its monetary policy approach, the downside risks for the US dollar appear to be limited. This change takes place in the midst of uncertainty surrounding the economic policies anticipated under the incoming Trump administration.
In 2024, the Japanese yen is predicted to fall more than 10% versus the US dollar.
The 2-year and 10-year US Treasury yields dropped by about 2% on Monday, closing at 4.24% and 4.53%, respectively.
The USD/JPY is trading at about 156.20 in early European hours on Tuesday, continuing its losses for the third straight session on New Year's Eve. But in 2024, the Japanese yen (JPY) is expected to fall more than 10%, which would be the fourth consecutive year that it has lost value relative to the US dollar (USD).
The USD/JPY is trading at about 156.20 in early European hours on Tuesday, continuing its losses for the third straight session on New Year's Eve. But in 2024, the Japanese yen (JPY) is expected to fall more than 10%, which would be the fourth consecutive year that it has lost value relative to the US dollar (USD).
As traders continue to gauge market sentiment that the Bank of Japan (BoJ) may raise interest rates in January following the release of the Tokyo Consumer Price Index (CPI) inflation data last week, the improved Japanese Yen (JPY) is blamed for the decline in the USD/JPY pair.
The headline Tokyo CPI inflation rate increased from 2.6% in November to 3.0% YoY in December. In the meantime, the Tokyo CPI, which does not include Fresh Food and Energy, rose 2.4% YoY from 2.2% the month before. In addition, the Tokyo CPI excluding fresh food increased 2.4% year over year, which was higher than the 2.2% recorded in November but slightly less than the anticipated 2.5%.
The USD/JPY pair also faces difficulties as the US dollar declines in value due to declining Treasury yields. US Treasury bond yields dropped about 2% on Monday, and the US Dollar Index (DXY), which compares the USD to six major currencies, is still soft at 108.00 in the morning. The yields for the next two and ten years were 4.24% and 4.53%, respectively.
Since the Federal Reserve (Fed) may take a more cautious stance on possible rate cuts in 2025, indicating a change in its monetary policy approach, the downside risks for the US dollar appear to be limited. This change takes place in the midst of uncertainty surrounding the economic policies anticipated under the incoming Trump administration.
