3 days ago
- Business
- Wall Street Journal
Yen Strengthens on Prospects of Narrower Japan-U. S. Rate Differential
0043 GMT — The yen strengthens against other G-10 and Asian currencies in the early Asian session. Given prospects that the Fed may cut rates in September and later in the year, this might lead to a narrower Japan-U. S. rate differential in favor of Japan's currency, market observers say. The yen could recoup more of July's losses, DBS Group Research's Philip Wee says in a recent commentary. This may happen if Fed rate-cut expectations overshadow the market's focus on delayed BOJ hikes and scale back more of the recent upward momentum in JGB yields, the senior FX strategist adds. USD/JPY falls 0.4% to 146.79 and AUD/JPY drops 0.3% to 96.20, FactSet data show. (
