On Wednesday, USD/JPY rose to around 160.25, up 0.40% during the day and reaching the highest level in a month, close to the March 30 peak of 160.46. The pair is currently approaching a level that is highly sensitive to Japanese authorities, with the 160.00 level widely seen as a red line that could trigger currency market intervention.
The upward move is primarily supported by the resilience of the US dollar (USD) as markets remain cautious ahead of the Federal Reserve’s (Fed) monetary policy decision. Investors generally expect the status quo of interest rates to remain in the 3.50-3.75% range, which will keep Greenback in line with its main competitors. Attention now turns to Chairman Jerome Powell’s announcement as his comments could shape interest rate expectations in an environment marked by geopolitical tensions and elevated energy prices.
Political uncertainty surrounding the Fed’s leadership change adds another layer of caution. As Jerome Powell’s term expires in May, the potential appointment of Kevin Warsh is fueling speculation, although it has not yet changed expectations for prolonged tight monetary policy.
On the Japanese side, the Bank of Japan (BoJ) recently left its key interest rates unchanged, while reaffirming its commitment to gradually tighten monetary policy. However, the impact on the Japanese yen (JPY) remains restricted due to the still vast interest rate differential with the United States, which continues to favor carry trade strategies, weighing on the Japanese currency.
Meanwhile, Japanese authorities are increasing their vigilance. Finance Minister Satsuki Katayama recently warned of possible tough action against speculative moves, suggesting that coordinated intervention could be considered if instability escalates. This stance helps partially cap USD/JPY gains while maintaining fundamental tension around the 160.00 level.
OCBC analysts also highlight this risk of intervention, noting that any sustained move above 160.00 could prompt the Ministry of Finance to take action to stabilize the currency, especially as rising energy prices and the weakness of the JPY continue to weigh on the Japanese economy.
(This story was corrected April 29 at 5:35 p.m. to say that Japan’s finance minister is Satsuki Katayama, not Katsunobu Kato.)
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 | 0.15% | 0.14% | 0.35% | -0.10% | 0.68% | 0.78% | 0.10% | |
| EUR | -0.15% | -0.02% | 0.22% | -0.26% | 0.52% | 0.65% | -0.06% | |
| GBP | -0.14% | 0.02% | 0.24% | -0.24% | 0.53% | 0.66% | -0.04% | |
| JPY | -0.35% | -0.22% | -0.24% | -0.47% | 0.32% | 0.44% | -0.21% | |
| BOOR | 0.10% | 0.26% | 0.24% | 0.47% | 0.80% | 0.90% | 0.20% | |
| AUD | -0.68% | -0.52% | -0.53% | -0.32% | -0.80% | 0.11% | -0.61% | |
| NZD | -0.78% | -0.65% | -0.66% | -0.44% | -0.90% | -0.11% | -0.70% | |
| CHF | -0.10% | 0.06% | 0.04% | 0.21% | -0.20% | 0.61% | 0.70% |
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).
