Japanese Yen weakens as Japan’s 10-year yield hits 3% for first time since 1996
- USD/JPY advances toward 160.05 on Tuesday, gaining 0.19% on the day.
- Japan’s 10-year government bond yield reaches 3% for the first time since 1996.
- Scott Bessent expects Japanese authorities to take measures that could support the Japanese Yen.
USD/JPY trades around 160.05 on Tuesday at the time of writing, gaining 0.19% on the day, as the Japanese Yen (JPY) remains under pressure against the US Dollar (USD). The Japanese currency fails to benefit from rising domestic bond yields or comments from US Treasury Secretary Scott Bessent supporting a stronger Japanese Yen.
Japan’s 10-year government bond yield reaches 3% for the first time since September 1996. The rise comes amid inflation risks stemming from higher energy prices and speculation that the Bank of Japan (BoJ) may need to raise interest rates more quickly.
The increase in yields also reflects concerns over Japan’s public finances. Prime Minister Sanae Takaichi’s government plans significant investment spending, while a sustained rise in borrowing costs could increase the cost of servicing Japan’s massive public debt. These fiscal concerns appear to limit the support provided to the Japanese Yen by expectations of tighter monetary policy.
Meanwhile, US Treasury Secretary Scott Bessent says on Tuesday that he expects the Japanese government and the BoJ to take measures that would lead to a stronger Japanese Yen. His comments suggest that US authorities would like to see the Japanese central bank further normalize monetary policy.
Japanese Finance Minister Satsuki Katayama also says she met with Bessent, adding that both officials agreed on the importance of orderly Japanese Yen movements for global market stability. The United States (US) and Japan also reaffirm their willingness to continue cooperating on foreign exchange matters.
However, the Japanese Yen remains weak despite these comments and the rise in Japanese yields, allowing USD/JPY to approach the psychological 160.00 level once again. The Japanese currency’s limited reaction suggests that fiscal concerns continue, for now, to offset expectations of further monetary tightening by the BoJ.
Japanese Yen Price Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.16% | 0.08% | 0.19% | 0.24% | 0.19% | 0.20% | 0.22% | |
| EUR | -0.16% | -0.08% | 0.06% | 0.08% | 0.03% | 0.03% | 0.06% | |
| GBP | -0.08% | 0.08% | 0.11% | 0.17% | 0.12% | 0.14% | 0.14% | |
| JPY | -0.19% | -0.06% | -0.11% | 0.05% | -0.01% | 0.00% | 0.00% | |
| CAD | -0.24% | -0.08% | -0.17% | -0.05% | -0.06% | -0.07% | -0.04% | |
| AUD | -0.19% | -0.03% | -0.12% | 0.01% | 0.06% | 0.00% | 0.01% | |
| NZD | -0.20% | -0.03% | -0.14% | -0.01% | 0.07% | -0.01% | 0.03% | |
| CHF | -0.22% | -0.06% | -0.14% | -0.01% | 0.04% | -0.01% | -0.03% |
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 Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
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Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
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