USD/JPY holds near nine-month highs as Japan’s fiscal stance weighs on Yen
- The Japanese Yen remains pressured even as the US Dollar softens, with USD/JPY hovering near nine-month highs.
- PM Takaichi reiterates commitment to fiscal support as Japan seeks to sustain its fragile recovery.
- In the US, focus shifts to the House vote to end the record-long government shutdown and rising odds of a December Fed rate cut.
The Japanese Yen (JPY) remains under pressure against the US Dollar (USD) on Wednesday, with USD/JPY hovering near nine-month highs around 154.64, despite a broadly softer Greenback. The Yen continues to face headwinds as Japan’s expansionary fiscal stance and the Bank of Japan’s (BoJ) cautious approach to monetary policy normalization weigh on the currency.
During Wednesday’s meeting of the Council on Economic and Fiscal Policy, Prime Minister Sanae Takaichi reiterated her commitment to supporting Japan’s fragile recovery through an expansive fiscal approach. Private-sector members reportedly urged the government to compile a supplementary budget exceeding ¥14 trillion, arguing that additional spending is needed to offset slowing domestic demand and weak wage growth.
Takaichi also called on Bank of Japan Governor Kazuo Ueda to provide regular policy updates to the council. She reiterated that Japan cannot yet claim to have fully emerged from deflation, warning that “with incorrect policies, there is a risk Japan could slide back,” which would hurt consumption and investment.
Meanwhile, Japanese officials continued to voice concern over the Yen’s persistent weakness, though without signaling imminent action. Finance Minister Satsuki Katayama said the government is closely monitoring foreign exchange moves “with a high sense of urgency,” including disorderly or speculative fluctuations.
In the United States, attention remains focused on the House of Representatives' vote scheduled for later on Wednesday to end the record-long government shutdown.
While progress toward reopening the government and restoring federal operations briefly lent support to the Greenback, the move proved short-lived, with the Dollar easing again as traders focus on growing expectations of another Federal Reserve (Fed) rate cut in December.
According to a Reuters poll published earlier in the day, 84 of 105 economists expect the Fed to lower the federal funds rate by 25 basis points to a 3.50%-3.75% range at its December 10 meeting.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.08% | 0.16% | 0.32% | -0.08% | -0.22% | -0.17% | -0.39% | |
| EUR | 0.08% | 0.23% | 0.41% | -0.01% | -0.14% | -0.10% | -0.31% | |
| GBP | -0.16% | -0.23% | 0.18% | -0.24% | -0.37% | -0.33% | -0.55% | |
| JPY | -0.32% | -0.41% | -0.18% | -0.42% | -0.55% | -0.48% | -0.72% | |
| CAD | 0.08% | 0.00% | 0.24% | 0.42% | -0.13% | -0.08% | -0.30% | |
| AUD | 0.22% | 0.14% | 0.37% | 0.55% | 0.13% | 0.05% | -0.17% | |
| NZD | 0.17% | 0.10% | 0.33% | 0.48% | 0.08% | -0.05% | -0.22% | |
| CHF | 0.39% | 0.31% | 0.55% | 0.72% | 0.30% | 0.17% | 0.22% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Vishal Chaturvedi
FXStreet
I am a macro-focused research analyst with over four years of experience covering forex and commodities market. I enjoy breaking down complex economic trends and turning them into clear, actionable insights that help traders stay ahead of the curve.
