The Japanese yen declined in the Asian market on Friday against a basket of major and minor currencies, extending its losses for the second consecutive day against the US dollar, moving away from a two-week high, amid continued correction and profit-taking, in addition to the ongoing rise of the US currency ahead of the release of US monthly jobs data.

Less aggressive comments from Bank of Japan Governor Kazuo Ueda reduced the likelihood of a Japanese interest rate hike in October, pending the release of more key data on developments in the worlds fourth-largest economy.

Price Overview

Yen exchange rate today: the dollar rose against the yen by 0.35% to (147.77), from todays opening level at (147.26), with a low recorded at (147.09).

The yen ended Thursdays trading down by 0.15% against the dollar, its first loss in five days, due to correction and profit-taking from a two-week high at 146.59 yen.

US Dollar

The dollar index rose on Friday by 0.15%, extending gains for the second straight session, reflecting the continued rise of the US currency against a basket of global currencies.

This rise comes ahead of the release of the US monthly jobs data, which will provide further evidence regarding whether the Federal Reserve will continue easing monetary policy and cutting interest rates during the remainder of this year.

Kazuo Ueda

Bank of Japan Governor Kazuo Ueda said in a speech before business leaders in Osaka, western Japan, on Friday: if uncertainty over external economies and trade policies persists, companies may focus more on cutting costs, which could weaken efforts to reverse price increases in wages.

Ueda added: the future path of the US economy and the course of monetary policy could significantly affect Japans economy and prices. He explained: therefore, we will continue to monitor the situation closely.

Opinions and Analysis

Shotaro Mori, chief economist at SBI Shinsei Bank, said: there was no clear change in the Bank of Japans statement indicating that it was trying to pave the way for a rate hike in October.

Mori added: if the impact of tariffs increases going forward, the key will be to study precise data on Japans economic growth and corporate earnings in the third quarter.

Mori explained: a rate hike by the Bank of Japan in December is now more likely than in October.

Traders currently price in less than a 40% chance of a quarter-point rate hike in Japan on October 30, according to London Stock Exchange data.

In order to reprice those expectations, investors are awaiting the release of more data on inflation, unemployment, and wages in Japan.