USD/JPY declines as Fed signals 25bp rate cut, contrasting Bank of Japan's hawkish stance.
The USD/JPY currency pair dipped as expectations for the Federal Reserve (Fed) to adopt a more dovish stance increased, with the Federal Open Market Committee (FOMC) meeting minutes and Fed Chair Powell's speech suggesting a 25 basis point rate cut in September. The yen appreciated as the Fed's dovish tone contrasts with the Bank of Japan's hawkish stance. The USD/JPY pair has declined, moving back into its recent consolidation range of 146.00 to 148.00, with sellers resuming near-term control. The Japanese yen has strengthened against major world currencies due to increased demand amid geopolitical risks and expectations of an additional Bank of Japan rate hike in 2024.
August 18, 2024
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