[Yen Under Pressure from Rising Oil Prices, Dollar Reclaims Momentum]
USD/JPY rebounds on Thursday, regaining much of yesterday’s losses as the U.S. dollar mounts a modest recovery after dropping to a three‑month low. At the time of reporting, USD/JPY trades close to 159.05, up roughly 0.55 % during the session.
The Greenback finds support as Treasury yields rebound from a sharp dip on Wednesday. The Treasury Department announced plans to increase liquidity‑support buybacks for longer‑dated government securities, lifting both the 10‑year and 30‑year yields by about 6 basis points on Thursday.
The U.S. Dollar Index climbs to around 98.90, bouncing from an intraday low of 98.56—the steepest point since early May. Weekly labor‑market data add confidence, with initial jobless claims easing to 206 k for the week ending August 15, underscoring demand for higher wages.
Meanwhile, the Japanese yen struggles to outperform its peers amid elevated oil prices, which act as a significant short‑term drag, while low interest rates continue to hamper currency gains.
Recent data show Japan posting record‑high import and export totals in July. Imports rose 27.8 % year over year, driven largely by soaring energy costs, while exports grew 23.2 %, resulting in a trade deficit of ¥634.5 billion.
Analysts at Societe Generale maintain a constructive stance on the yen’s medium‑term prospects, noting that a rebound is plausible but contingent on additional factors. They state, “In the future a yen recovery is possible, yet only with the caveat that it will likely require another round of FX intervention to push USD/JPY lower, unless oil prices fall dramatically enough to lift growth outlooks.”
In the policy arena, the Bank of Japan is slated to raise interest rates in September. Conversely, recent U.S. metrics bolster expectations that the Federal Reserve will keep rates steady into the upcoming month.
St. Louis Fed President Alberto Musalem highlighted that, given current rate levels, the likelihood of inflation returning to the 2 % target appears subdued. He warned that hiking rates now could reduce the urgency for further action. Quoted: “Given present interest‑rate environments, I see a lower probability of inflation resuming its 2 % path; raising rates ahead may ease the need for aggressive moves down the road.”
Looking ahead, Japan’s national consumer price index and the preliminary purchasing managers’ index for both economies are scheduled for release on Friday.
Japanese Yen Price Today
The table below displays the percentage change of Japanese Yen (JPY) against listed major currents today. The Yen holds a slight edge against the Swiss franc, posting a minor decline versus peer currencies.
| US | -0.04% | 0.57% | -0.15% | -0.18% |
| GBC | -0.15% | -0.22% | -0.16% | |
| EUR | -0.06% | -0.21% | -0.20% | |
| CAD | 0.15% | 0.17% | 0.00% | 0.58% |
| AUD | -0.18% | -0.13% | -0.32% | 0.23% |
| NZD | 0.12% | 0.16% | -0.04% | 0.55% |
| CHF | -0.43% | -0.46% | -0.38% | -0.39% |
| BPO | -0.42% | -0.51% | -0.35% |
The heat map visualizes percentage changes among major currencies. The base currency occupies the left column, while the query currency belongs to the top row. For instance, selecting Japanese Yen as the base and moving horizontally toward the U.S. Dollar yields the JPY‑to‑USD change shown.
<small>Looking ahead</small>
The next key economic releases include Japan’s national consumer price index and the preliminary purchasing managers’ index for both Japan and the United States, both due Friday.
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