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USD/JPY slumps to near 148.00 as Japanese Yen continues to outperform

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USD/JPY slumps to near 148.00 as Japanese Yen continues to outperform

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New update 2025.09.30 20:30
USD/JPY slumps to near 148.00 as Japanese Yen continues to outperform

update 2025.09.30 20:30

  • USD/JPY extends its downside to near 148.00 as the safe-haven demand of the Japanese Yen has improved further.
  • US VP Vance signaled that a partial government shutdown looks likely.
  • Investors await the US JOLTS Job Openings data for August.

The USD/JPY pair extends its losing streak for the third trading day on Tuesday, trading 0.35% lower to near 148.00 during the European trading session on Tuesday. The asset faces selling pressure as weakness in the US Dollar (USD) due to fears of a likely United States (US) government shutdown has increased the safe-haven demand of the Japanese Yen (JPY).

Japanese Yen Price Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Swiss Franc.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.10% 0.00% -0.41% 0.05% -0.48% -0.27% -0.00%
EUR 0.10% 0.09% -0.33% 0.13% -0.38% -0.17% 0.13%
GBP -0.01% -0.09% -0.38% 0.06% -0.48% -0.26% 0.05%
JPY 0.41% 0.33% 0.38% 0.43% -0.06% 0.31% 0.46%
CAD -0.05% -0.13% -0.06% -0.43% -0.52% -0.29% -0.03%
AUD 0.48% 0.38% 0.48% 0.06% 0.52% 0.21% 0.53%
NZD 0.27% 0.17% 0.26% -0.31% 0.29% -0.21% 0.32%
CHF 0.00% -0.13% -0.05% -0.46% 0.03% -0.53% -0.32%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

At the time of writing, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, trades 0.15% lower to near 97.80.

Risks to partial US government shutdown have increased, followed comments from Vice President (VP) JD Vance after meeting with Democrats on Monday. "I think we're headed to a shutdown because the Democrats won't do the right thing," Vance said to CNBC.

Meanwhile, the US Labor and Commerce departments have warned that economic data releases, including employment data for September, could halt if the stopgap bill doesn't get approved in the House of Senate by the deadline of Tuesday midnight.

In Tuesday's session, investors will focus on the US JOLTS Job Openings data for August, which will be published at 14:00 GMT.  US employers are expected to have posted fresh 7.1 million jobs, in line with the prior reading of 7.18 million.

 

US Dollar FAQs

The US Dollar (USD) is the official currency of the United States of America, and the 'de facto' currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world's reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.

The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.

In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed's weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.

Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.



Date

Created

 : 2025.09.30

Update

Last updated

 : 2025.09.30

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