USD/JPY saw weighty supply during Friday’s Asian session and weakened below the 162.00 level as investors remain on high alert in anticipation of potential government intervention to support the Japanese yen (JPY). Moreover, the continued sell-off in US dollars (USD) is proving to be another factor putting downward pressure on spot prices for the second day in a row.
The USD Index (DXY), which tracks the dollar against a basket of currencies, fell to a fresh weekly low following less hawkish FOMC meeting minutes that revealed policymakers were divided on the direction of interest rates. That said, investors are still pricing in about a 65% chance that the U.S. Federal Reserve (Fed) will raise borrowing costs in September. This, combined with continued geopolitical uncertainty, could limit deeper losses for the safe-haven currency and provide some support for the USD/JPY pair.
Recent reports indicate that the US military launched a fresh wave of attacks on Iran earlier this week in retaliation for Iran’s attacks on merchant ships in the Strait of Hormuz. Iran responded by targeting American allies and bombing American military facilities in Bahrain and Kuwait. Moreover, US President Donald Trump announced on Wednesday that the memorandum of understanding with Iran aimed at ending the conflict in the Middle East has ended. This keeps geopolitical risk in play and favors dollar bulls.
Meanwhile, investors remain concerned about economic risks from continued energy supply disruptions in the Strait of Hormuz, as Japan relies on the Middle East for more than 90% of its oil imports. Moreover, borrowing costs in Japan remain significantly lower compared to other Western economies, including the US. This may prevent traders from placing aggressive, bullish bets on the JPY, cautioning against confirming that the USD/JPY pair has peaked and positioning for further losses.
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 Australian dollar.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.13% | -0.16% | -0.39% | -0.09% | -0.06% | -0.38% | -0.24% | |
| EUR | 0.13% | -0.03% | -0.22% | 0.04% | 0.06% | -0.25% | -0.11% | |
| GBP | 0.16% | 0.03% | -0.20% | 0.07% | 0.08% | -0.22% | -0.10% | |
| JPY | 0.39% | 0.22% | 0.20% | 0.27% | 0.30% | -0.04% | 0.09% | |
| BOOR | 0.09% | -0.04% | -0.07% | -0.27% | 0.02% | -0.30% | -0.17% | |
| AUD | 0.06% | -0.06% | -0.08% | -0.30% | -0.02% | -0.32% | -0.21% | |
| NZD | 0.38% | 0.25% | 0.22% | 0.04% | 0.30% | 0.32% | 0.12% | |
| CHF | 0.24% | 0.11% | 0.10% | -0.09% | 0.17% | 0.21% | -0.12% |
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).
