JPY weakens amid mild USD strength – Scotiabank
By FXStreet Insights Team
Date Published: 2 Dec 2025 | Date Modified: 2 Dec 2025
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The Japanese Yen (JPY) slipped 0.3% against the US Dollar (USD), underperforming most G10 currencies as markets digest BoJ Governor Ueda’s hawkish comments.
The Japanese Yen (JPY) slipped 0.3% against the US Dollar (USD), underperforming most G10 currencies as markets digest BoJ Governor Ueda’s hawkish comments. Attention has moved from an almost fully priced December rate hike to Japan’s medium-term monetary outlook and the implications of rising government bond yields, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
BoJ focus shifts to medium-term outlook after hawkish signal
"The JPY is down a modest 0.3% vs. the USD and underperforming all of the G10 currencies in an environment of broad (albeit mild) USD strength."
"The BoJ remains a dominant driver in the aftermath of Monday’s hawkish nudge from Gov. Ueda however market participants have shifted their focus from December (where a 25bpt hike is now almost fully priced) to the medium-term outlook while also considering the implications for Japan’s bond market."
"Turbulence was a key factor in forcing the BoJ’s hand (to pause) back in Q2 and market participants appear to be concerned about a repeat as JGB yields push to fresh multi-decade highs."
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