According to Shaun Osborne, Chief FX Strategist at Scotiabank, the Japanese Yen (JPY) is exhibiting weakness, declining by 0.7% against the US Dollar (USD) and showing weaker performance compared to the majority of G10 currencies amidst widespread USD appreciation.
Investors Await Next Week’s BoJ Decision
“Tariff-related news is currently the primary market driver, putting downward pressure on the Yen as investors assess the potential for reduced trade friction between the US and China. Recent domestic data revealed a higher-than-anticipated CPI figure for Tokyo.”
“The consensus expectation is that the BoJ will maintain its current policy stance at the upcoming meeting next week. However, the language used in the accompanying statement will be carefully analyzed for any signals regarding potential adjustments to the bank’s future tightening strategy.”
