USD/JPY rate reaches a 40‑year high
The dollar-to-yen rate rose to 161.8 on Thursday, approaching the 161,96 level recorded in July 2024.
A further rise in USD/JPY would mean the yen reaching its weakest level against the dollar since 1986.
According to Reuters, investors still value the potential intervention of Japanese authorities in the foreign‑exchange market to support the yen, similar to what happened at the end of April and the beginning of May.
The rise in the U.S. dollar, still regarded as a safe haven, followed reports of a potential agreement between the United States and Iran.
Read also: The dollar reacts to a breakthrough in Iran. Is the Middle East war over? Here’s what’s happening with USD/PLN and EUR/USD
Despite assurances from Donald Trump about the impending end of the Middle East conflict, the Swiss Foreign Ministry announced that the talks scheduled for Friday were canceled.
Tensions between the United States and Israel over the content of the settlement protocol have reignited uncertainty about the upcoming easing of war effects in financial markets.
Additionally, the value of the U.S. currency rose after the Federal Reserve’s recent decision to keep interest rates unchanged, and the hawkish tone of Fed Chair Kevin Warsh.
According to ING Think analysts, “in the near future the dollar may still enjoy enthusiasm sparked by the Fed meeting.”
“Markets will likely fully price in two rate hikes by December after the release of the first good data,” they said.
Another factor putting pressure on the yen is low interest rates in Japan, which significantly diverge from levels maintained by other major economies.
Source: Trading Economics.
Read also: The dollar on a long road to 4 PLN? Expert issued forecasts for USD/PLN and EUR/USD. “The dollar could gain.”
See also: Will the dollar surprise again? Expert issued a forecast for USD/PLN and EUR/USD. “It’s hard for me to believe there will be no more fires.”
Dollar to Japanese yen on Friday, June 19
The dollar to Japanese yen on Friday, June 19 is at 161,2 JPY.
Chart. Dollar to Japanese yen (USD/JPY)
Source: TradingView.
Read also: Dollar before a chance to break out? Expert: “Capital will flow back to USD.”
See also: Dollar before a “nervous and dynamic” move, euro waiting to fall? Expert issued a forecast for USD/PLN and EUR/USD
Source: Reuters.
