- The Japanese Yen (JPY) is rising after losses yesterday
- BoJ rate hike hopes to lift the yen
- The US Dollar (USD) falls against major peers
- ADP payrolls fall by 32k
The US dollar Japanese yen (USD/JPY) exchange rate is falling after gains yesterday. The pair rose 0.27% in the previous session, settling on Tuesday at 155.87. On Monday at 21.30 UTC, USD/JPY trades -0.46% at 156.46 and traded in a range of 154.67 to 157.20.
The Japanese yen is rising on Wednesday, just days after Bank of Japan governor Ueda gave the strongest hint yet of a rate hike later this month.
Despite Prime Minister Takeichi’s support for expansionary fiscal policy and lower rates, Governor Ueda said that policymakers will weigh the pros and cons of tighter policy at this month’s meeting.
A well-received Japanese government bond auction earlier this week has helped to soothe investors’ fears and pulled yields off multi-year highs, although risk appetite remains fragile.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback against a basket of major currencies, is trading at -0.04% at 99.40, extending losses from last week.
The US dollar is falling for a ninth straight day on Wednesday as traders ramped up expectations of a December rate cut and a more dovish Fed chair.
ADP payrolls fell by 32,000 in November as companies shed payrolls in November by the most since early 2023, adding to concerns over the weakening of the labour market. Economists had expected private-sector payrolls to increase by around 5,000.
Federal Reserve policy makers have warned that the labour market is sufficiently weak to justify another rate cut next week.
Meanwhile, the White House economic adviser Kevin Hassett has emerged as the frontrunner to become the next Fed chair. Trump said he will be announcing his pick in early 2026. However, given its dovish stance, the market is already expecting more rate cuts next year.
