- The Japanese Yen (JPY) rises for a seventh day
- Japan–US trade talks in focus
- The US Dollar (USD) is falling against its major peers
- US Fed speakers are in focus after Moody’s downgrade
The US dollar against the Japanese yen (USD/JPY) exchange rate is falling for a seventh straight day. The pair fell 0.18% in the previous session, settling on Monday at 144.98. At 20:30 UTC, USD/JPY trades -0.22% lower at 144.68 and trades in a range of 144.09 to 145.51.
The safe-haven Japanese yen has benefited from rising concerns over the outlook for the US economy following Moody’s credit rating downgrade.
Traders are focusing on news surrounding upcoming US-Japanese trade talks. The Japanese finance minister, Kato, said he expects to meet with US Treasury Secretary Scott Bessent, and any discussions surrounding exchange rates will express how excessive volatility is undesirable.
There will be concerns that discussions regarding trade deals are going to include some currency components, which could be dollar negative.
The US Dollar is rising across the board. The US Dollar Index, which measures the greenback against a basket of major currencies, is -0.32% lower at 100.1 at the time of writing, marking a second day of losses.
The USD is extending losses and has dropped to a roughly two-week low versus the Japanese yen. The dollar is being weighed down by the Federal Reserve’s caution over the health of the US economy.
U.S. dollar has been under pressure following a sovereign credit rating downgrade by Moody’s the third rating agency to lower the US credit rating. Moody’s cited concerns over the mounting U.S. debt pile as the reason for the downgrade.
Concerns over U.S. debt could rise further as attention turns to a critical vote in Washington over President Trump’s sweeping tax cuts.
Federal Reserve officials speaking on Monday discussed the ramifications of the Moody’s downgrade and unsettled economic conditions.
There is no US economic data due to be released
