Japanese Yen strengthens to near 155.50 as BoJ signals December rate hike
The post Japanese Yen strengthens to near 155.50 as BoJ signals December rate hike appeared on BitcoinEthereumNews.com.
The USD/JPY pair loses ground to a two-week low around 155.45 during the early Asian session on Tuesday. The Japanese Yen (JPY) edges higher against the US Dollar (USD) following hawkish rhetoric from the Bank of Japan (BoJ) Governor Kazuo Ueda. BoJ’s Ueda hinted on Monday that the board might increase interest rates soon, highlighting the possibility of a move at the December policy meeting. Ueda added that delaying the interest rate hike for too long could cause sharp inflation and force the central bank to make rapid policy adjustments. His hawkish remarks boost the JPY and create a headwind for the pair. Traders are now pricing in about a 76% probability of a rate hike this month, up from around 58% on Friday, according to an index of overnight swaps. The likelihood of a move by January rises to around 94%. Mounting expectations for a December interest rate reduction by the US Federal Reserve (Fed) after the downbeat US economic data exert some selling pressure on the Greenback. Data released by the Institute for Supply Management (ISM) on Monday showed that the Manufacturing PMI fell to 48.2 in November from 48.7 in October. This figure came in weaker than the expectation of 48.6. Traders will keep an eye on the ADP Employment Change and US ISM Services Purchasing Managers Index (PMI) reports, which are due on Wednesday. In case of stronger-than-expected outcomes, this could lift the USD against the JPY in the near term. Japanese Yen FAQs The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors. One of the Bank of…
Filed under: News - @ December 1, 2025 11:26 pm