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04.09.202501:44:04UTC+00Japanese Yen Gains on Dollar Weakness

On Thursday, the Japanese yen experienced a resurgence, surpassing 148 per dollar, recovering from its previous session's downturn. This movement coincided with the dollar's retreat, influenced by softer US employment data which bolstered expectations that the Federal Reserve might cut rates. Domestically, Bank of Japan Governor Kazuo Ueda reiterated that the central bank's stance on interest rate hikes remains steadfast, provided that economic growth and inflation align with forecasts. Investors are now focused on Friday's impending wage data for additional insights into policy direction. Despite this recovery, the yen dipped to a one-month low on Wednesday due to political turbulence affecting market confidence. This was sparked by the resignation of ruling party secretary general Hiroshi Moriyama, a close ally of Prime Minister Shigeru Ishiba, leading to speculation about Ishiba's political future amid mounting pressure after an electoral setback. Among potential successors, Sanae Takaichi is perceived as supporting the continuation of low interest rates.



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