Skip to content Yen Plunges to Four-Month Low Amid Policy Woes
On Thursday, the Japanese yen weakened to around 156 per U.S. dollar, hitting its lowest point in nearly four months. This drop was due to uncertainties in Japan’s domestic policies and expectations of stricter policies in the U.S. under the new Trump administration.
Even though October saw Japan’s producer inflation rise at its fastest pace in over a year, investors remained unsure about how the Bank of Japan would approach policy normalization, especially after recent political changes. However, the central bank kept its forecast, suggesting it might raise its main interest rate to 1% by the second half of fiscal 2025.
Japan’s Q3 GDP Data Release This Friday
Investors are focusing on Japan’s third-quarter GDP data, which will be released on Friday, for a clearer picture of the country’s economic outlook. Meanwhile, the yen is also under pressure from a strengthening U.S. dollar. Traders continue to engage in “Trump trades” despite expectations that the Federal Reserve will gradually lower borrowing costs.
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