Japanese Yen dips as risk tone weighs, BoJ rate hike bets limit losses
The post Japanese Yen dips as risk tone weighs, BoJ rate hike bets limit losses appeared on BitcoinEthereumNews.com.
The Japanese Yen (JPY) edges lower during the Asian session on Tuesday and retreats further from a two-week high, touched against its American counterpart the previous day. A generally positive tone around the Asian equity markets is seen as a key factor undermining the JPY’s safe-haven status. Apart from this, the JPY downtick lacks any obvious fundamental catalyst and is more likely to be limited on the back of Bank of Japan (BoJ) Governor Kazuo Ueda’s strong signal that a December interest rate increase could be under consideration. Furthermore, speculations that government authorities might step in to stem further weakness in the domestic currency might hold back the JPY bears from placing aggressive bets. The US Dollar (USD), on the other hand, might continue with its struggle to attract any meaningful buyers amid the growing acceptance that the Federal Reserve (Fed) will lower borrowing costs again this month. This would further narrow the US-Japan rate differential, which, in turn, should support the lower-yielding JPY and cap the USD/JPY pair’s attempted recovery. Japanese Yen is pressured by receding safe-haven demand; bulls have the upper hand amid BoJ rate hike bets Asian stocks stage a modest recovery after the previous day’s selloff, undermining traditional safe-haven assets and prompting some selling around the Japanese Yen during the Asian session on Tuesday. This, along with a modest US Dollar (USD) uptick, assists the USD/JPY pair in building on the overnight bounce from the 154.65 region, or a two-week low. Bank of Japan Governor Kazuo Ueda offered the strongest signal yet toward further normalization and said on Monday that the likelihood of the central bank’s economic and price projections being met is rising. In fact, inflation in Japan has remained above the central bank’s 2% target for over three years, strengthening the case for policy…
Filed under: News - @ December 2, 2025 3:25 am