USD/JPY was flat on Friday, swinging between petite gains and losses as tight holiday season liquidity holds back price moves. At the time of writing, the pair is trading around 159.58, with investors remaining on the sidelines ahead of the US non-farm payrolls (NFP) report.
The upcoming U.S. jobs report is expected to show a bland recovery in employment, with wages forecast at $60,000. after a piercing decline of 92 thousand in February, while the unemployment rate will remain at 4.4%.
A stronger-than-expected reading could support the US dollar (USD) and hurt the Japanese yen (JPY). However, USD/JPY’s upside appears circumscribed as the pair remains near the 160 level, which previously prompted intervention focusing on the risk of action by Japanese authorities.
Japanese Finance Minister Satsuki Katayama said on Friday that authorities were “ready to take decisive action” against excessive currency volatility, warning that “speculative moves in oil and currency markets are active.” She added that the government was “ready to respond on all fronts,” noting that such volatility “impacts people’s lives.”
This comes as ongoing tensions over the US-Iran war are keeping the dollar buoyant while the resulting rise in oil prices is increasing inflation concerns and weighing on economic growth, complicating the outlook for monetary policy in major economies.
Japan’s situation differs from that of the United States because it is highly dependent on imported energy, making it more vulnerable to rising oil prices, while the United States, as a net exporter, is in a relatively better position. This situation may leisurely down the pace of further interest rate increases by the Bank of Japan (BoJ), even if policymakers maintain their attitude towards a gradual tightening of monetary policy and markets assess the probability of a rate raise at the April meeting at around 70%.
Meanwhile, markets have largely priced in the Federal Reserve’s (Fed) bets on interest rate cuts and now expect rates to remain unchanged through 2026.
Today’s US dollar price
The table below shows the current percentage change of the United States Dollar (USD) against the major listed currencies. The US dollar was strongest against the New Zealand dollar.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.05% | -0.12% | -0.05% | 0.04% | -0.10% | 0.09% | -0.07% | |
| EUR | 0.05% | -0.03% | 0.02% | 0.09% | 0.08% | 0.13% | -0.02% | |
| GBP | 0.12% | 0.03% | 0.06% | 0.12% | 0.13% | 0.15% | 0.00% | |
| JPY | 0.05% | -0.02% | -0.06% | 0.08% | 0.05% | 0.11% | -0.06% | |
| BOOR | -0.04% | -0.09% | -0.12% | -0.08% | -0.02% | 0.04% | -0.11% | |
| AUD | 0.10% | -0.08% | -0.13% | -0.05% | 0.02% | 0.05% | -0.10% | |
| NZD | -0.09% | -0.13% | -0.15% | -0.11% | -0.04% | -0.05% | -0.16% | |
| CHF | 0.07% | 0.02% | -0.01% | 0.06% | 0.11% | 0.10% | 0.16% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select 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).
