- The Japanese Yen (JPY) rises after weeks of declines
- Yen rises on safe-haven flows
- The US Dollar (USD) falls versus its major peers
- US shutdown jitters hit USD
The US dollar Japanese yen (USD/JPY) exchange rate is falling after five weeks of gains. The pair rose 1% in the previous week, settling on Thursday at 149.51. On Monday at 17:00 UTC, USD/JPY trades -0.62% at 148.59 and traded in a range of 148.47 to 149.55.
The Japanese yen is benefiting from the safe-haven demand as investors sell out of the US dollar amid concerns over the US government shutdown.
Trump is due to meet with US congressional leaders today in a last-ditch effort to avoid a shutdown, which would start on Wednesday.
This shutdown is potentially more damaging than previous shutdowns, as Trump has warned that federal workers will be fired rather than furloughed, unlike in previous government shutdowns.
Meanwhile, there is also plenty of action on the Japanese economic calendar this week, with the Bank of Japan summary of opinions to be released on Tuesday, in addition to Japanese retail trade data and manufacturing data later in the week.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback against a basket of major currencies, is falling 0.23% at 97.93, after gains last week.
The US dollar is falling at the start of the new week, due to concerns over a looming US government shutdown.
Investors are awaiting a slew of US labour market and PMI data this week. Investors will be paying close attention to employment figures to gauge the health of the labour market. The Federal Reserve resumed rate cuts this month, noting the move was to support deteriorating job market conditions.
The data comes after figures last week showed that the US economy was holding up better than initially expected, with GDP properly revised to 3.8% marking the strongest pace of growth in two years.
Data also showed that the Federal Reserve’s preferred gauge for inflation was also on the March higher at 2.9% year on year, in line with expectations.
