Japanese Yen Hits Multi-Day High Against USD as BoJ-Fed Policy Divergence Fuels Rally

Japanese Yen Advances to Multi-Day High as BoJ-Fed Policy Divergence Boosts Bulls

Japanese Yen Strengthens Against USD Amid Hawkish BoJ Expectations

The Japanese Yen (JPY) continues its upward momentum against the US Dollar (USD), hitting a multi-day peak near the 143.00 level early Monday European session. The surge is supported by rising market expectations that the Bank of Japan (BoJ) will hike interest rates again this year, contrasting with the Federal Reserve’s outlook for possible rate cuts.

Safe-Haven Demand and Trade Deal Optimism Support JPY

Heightened geopolitical tensions and ongoing uncertainty around US President Donald Trump’s trade policies have bolstered safe-haven demand for the Yen. Additionally, optimism about a potential free trade agreement between the US and Japan adds further support to the JPY, intensifying downward pressure on the USD/JPY pair.

Diverging Monetary Policies Drive USD/JPY Movements

While the Federal Reserve is expected to ease monetary policy, reducing borrowing costs, the BoJ maintains a hawkish stance. This policy divergence creates strong bullish momentum for the Japanese Yen, which could sustain its appreciation against the US Dollar in the near term.

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