- The Japanese Yen (JPY) falls to an 8-month low
- The government gives a verbal warning over FX speculators
- The US Dollar (USD) is flat versus major peers
- The House votes to reopen the government
The US dollar Japanese yen (USD/JPY) exchange rate is rising for a fourth straight day. The pair rose 0.01% in the previous session, settling on Tuesday at 154.16. On Wednesday at 17.30 UTC, USD/JPY trades 0.28% at 154.59 and trades in a range of 154.05 to 154.05.
The Japanese yen is falling sharply, dropping to a fresh 8-month low, close to 155, after Japanese Finance Minister Katayama issued a fresh warning on currency movements, raising concerns that the government could step in to support the currency.
The yen dropped to 154.79 before pairing losses following Katamaya’s remarks to 144.05. The comments come amid nervousness in the market over the gradual move towards levels at which interventions have occurred in the past. Further weakness in the yen could trigger additional speculation and put further pressure on Katayama to at least intervene verbally more frequently.
Japan intervened in the foreign exchange markets in July last year when the yen was trading around 160 to the dollar. It currently trades at its weakest level since February, down sharply following the Bank of Japan’s dovish message, raising questions over whether another rate hike is coming.
The US Dollar is unchanged against its major peers. The US Dollar Index, which measures the greenback against a basket of major currencies, is flat, 0.01% at 99.45 after five days of losses.
The US dollar is unchanged versus its major peers after recent weakness. The Republican-controlled House of Representatives is set to vote today on a bill the Senate approved to restore funding to government agencies and end the shutdown, which began on October 1st.
The reopening of the US government will lead to a flood of economic releases, putting the focus squarely on the Federal Reserve’s rate policy going forward.
ADP payroll figures this week showed that firms cut 11,250 jobs on average in the last four weeks of October, highlighting weakness in the jobs market.
