USDJPY News & Market Insights
The USD/JPY exchange rate indicates how many Japanese Yen (JPY) are required to buy one US Dollar (USD) and is widely followed as a measure of risk sentiment in global markets. It is heavily influenced by the Bank of Japan (BoJ) and the Federal Reserve (Fed). Japan historically maintains ultra-low or negative interest rates, making the Yen a popular funding currency for carry trades. During market uncertainty, investors often buy Yen as a safe-haven asset, leading to Yen appreciation. At the same time, a strong US economy or rising Fed interest rates typically push USD/JPY higher.
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