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by The value of the Japanese yen dropped to approximately 147 against the dollar this past Thursday, marking a new low in the past month. This occurred after Japan’s new Prime Minister, Shigeru Ishiba, announced following his discussion with Bank of Japan Governor Kazuo Ueda that it is premature to consider further interest rate hikes.
The daily chart below demonstrates the USD/JPY conversion rate as of this writing.
USDJPY Fundamental Analysis – 3-October-2024
He explained that the current state of the economy does not justify additional rate increases, which led to market analysts delaying their predictions for the next BOJ rate hike. The newly appointed economy minister echoed this caution, advising the central bank to avoid hasty rate hikes.
Additionally, the latest data revealed that Japan’s business activity has grown for the eighth month in September, driven by strong demand.
Meanwhile, the yen weakened further against the dollar due to unexpectedly strong U.S. private job growth, which suggests that the Federal Reserve may not need to reduce interest rates significantly.
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