Forex News
- AUD/JPY weakens to near 113.35 in Friday’s early European session.
- Japan’s Katayama warned of possible intervention in the currency market.
- The cross maintains a constructive tone above the 100-day SMA, with bullish RSI momentum.
- The first upside barrier emerges at 113.80; the initial support level to watch is 112.70.
The AUD/JPY cross trades in negative territory around 113.35 during the early European trading hours on Friday. Fears of possible intervention from Japanese officials provide some support to the Japanese Yen (JPY) against the Australian Dollar (AUD).
Japan’s Finance Minister Satsuki Katayama delivered verbal intervention again on Friday, saying that "if it becomes necessary, we will take decisive action at any time.” This remark came ahead of a holiday weekend in Japan, a timing that in the past has been used for late-night interventions.
The Bank of Japan (BoJ) will meet later this month after hiking interest rates to the highest level in three decades in June. The Japanese central bank is anticipated to raise rates again before the end of the year, but it isn’t expected to move at the July policy meeting.
Technical Analysis:
In the daily chart, AUD/JPY holds a constructive bullish bias as spot price advances above both the 100-day simple moving average (SMA) and the Bollinger Bands’ middle line, hinting at firm underlying demand. The Relative Strength Index (14) at 56.03 stays in positive territory without reaching overbought levels, suggesting that the latest upswing still has room to extend while prices remain supported above these key averages.
On the topside, immediate resistance is defined by the Bollinger upper band around 113.80, where fresh supply could slow the rally. The next hurdle to watch is the May 13 high of 114.74. On the downside, initial support is seen at the 100-day SMA at 112.70, followed by the Bollinger middle band at 112.45 and the lower band near 111.05, levels that together outline the main downside cushions in case of a corrective pullback.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Japanese Yen FAQs
The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.
One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.
Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.
The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.
Gold prices rose in India on Friday, according to data compiled by FXStreet.
The price for Gold stood at 12,367.41 Indian Rupees (INR) per gram, up compared with the INR 12,311.85 it cost on Thursday.
The price for Gold increased to INR 144,249.10 per tola from INR 143,603.00 per tola a day earlier.
Unit measure | Gold Price in INR |
|---|---|
1 Gram | 12,367.41 |
10 Grams | 123,672.40 |
Tola | 144,249.10 |
Troy Ounce | 384,696.80 |
FXStreet calculates Gold prices in India by adapting international prices (USD/INR) to the local currency and measurement units. Prices are updated daily based on the market rates taken at the time of publication. Prices are just for reference and local rates could diverge slightly.
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
(An automation tool was used in creating this post.)
- USD/CAD remains on the defensive, though the downside seems limited amid fundamental cues.
- Bullish oil prices underpin the Loonie, while US-Iran tensions and Fed hike bets support the USD.
- Traders now look forward to the second-tier US economic data to grab short-term opportunities.
The USD/CAD pair struggles to capitalize on the overnight bounce from the vicinity of the 1.4000 psychological mark, or a one-month low, and attracts some sellers during the Asian session on Friday. Spot prices currently trade around the 1.4035 region, though the downside remains cushioned amid mixed fundamental cues.
Crude oil prices hold steady near a one-month high, touched earlier this week, amid escalating US-Iran tensions and worries about energy supply disruptions. This, to a large extent, offsets the Bank of Canada's (BoC) cautious outlook earlier this week and underpins the commodity-linked Loonie, which acts as a headwind for the USD/CAD pair. Meanwhile, elevated oil prices fuel inflation fears and revive US Federal Reserve (Fed) rate hike bets, which benefits the US Dollar (USD) and limits the downside for the currency pair.
In the latest developments surrounding the Middle East crisis, the US carried out a sixth consecutive night of air strikes against Iran and expanded its military campaign beyond conventional military targets. In fact, officials in southern Iran's Bandar Abbas reported that civilian infrastructure – including power facilities and a train station – has been hit. Iran responded by attacking US military facilities across the region. This raises fears of a return to all-out war and keeps the geopolitical risk premium in play, benefiting the safe-haven Greenback.
Meanwhile, Iran's Islamic Revolutionary Guard Corps had threatened to expand the conflict by targeting additional regional energy supply routes. In fact, Reuters reported that Iran has asked Yemen’s Houthis to stand ready to close the Red Sea oil route. This, along with the US blockade of Iranian ports and the closure of the Strait of Hormuz, supports oil prices. Investors seem convinced that energy-driven inflationary pressures will force the US central bank to stick to its hawkish stance, which favors the USD bulls and supports the USD/CAD pair.
Traders now look forward to Friday's US economic docket – featuring Building Permits, Housing Starts, Industrial Production data, and the prelim University of Michigan Consumer Sentiment Index and Inflation Expectations. This, along with speeches from influential FOMC members, will drive the USD demand and provide some impetus to the USD/CAD pair. Nevertheless, spot prices remain on track to register heavy weekly losses, though the aforementioned fundamental backdrop warrants caution before positioning for any further depreciating move.
Canadian Dollar Price This week
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies this week. Canadian Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.31% | -0.55% | 0.39% | -0.86% | -0.47% | -1.26% | 0.15% | |
| EUR | 0.31% | -0.24% | 0.72% | -0.56% | -0.22% | -0.96% | 0.46% | |
| GBP | 0.55% | 0.24% | 0.92% | -0.31% | 0.03% | -0.71% | 0.76% | |
| JPY | -0.39% | -0.72% | -0.92% | -1.33% | -0.87% | -1.69% | -0.30% | |
| CAD | 0.86% | 0.56% | 0.31% | 1.33% | 0.47% | -0.36% | 1.07% | |
| AUD | 0.47% | 0.22% | -0.03% | 0.87% | -0.47% | -0.74% | 0.58% | |
| NZD | 1.26% | 0.96% | 0.71% | 1.69% | 0.36% | 0.74% | 1.48% | |
| CHF | -0.15% | -0.46% | -0.76% | 0.30% | -1.07% | -0.58% | -1.48% |
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 Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
The Iranian Islamic Revolutionary Guards Corps (IRGC) said that no oil or gas will be exported through the Strait of Hormuz as long as US attacks continue, Tasnim news agency reported on Friday.
The IRGC said that it launched attack on US command centre in Syria's Al-Tanf. The Iranian military further stated that it targeted US maritime surveillance radar in Oman.
Market reaction
At the time of writing, the West Texas Intermediate (WTI) is up 0.37% on the day at $79.22.
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
- USD/CHF moves little as escalating Middle East conflicts and Red Sea energy threats drive safe-haven demand for both currencies.
- Softer US inflation and falling producer prices have led markets to rule out a near-term Fed rate hike.
- The Swiss National Bank warns that rising geopolitical friction has increased near-term inflation risks despite steady rates.
USD/CHF holds ground after registering modest gains in the previous day, trading around 0.8090 during the Asian hours on Friday. The pair could rise as the US Dollar (USD) receives support from escalating developments surrounding conflicts in the Middle East.
Reuters reported on Thursday that Iran has instructed Yemen’s Houthi militia to stand ready to close the critical Red Sea oil route if the United States strikes Iranian power infrastructure, presenting a potent new threat to global energy supplies. Amplifying these concerns, the Tasnim news agency reported explosions in Bandar Abbas, Qeshm, and Ahvaz, while very loud explosions were also heard in Kuwait and as far away as Basra.
However, the Greenback could face challenges as softer-than-expected US inflation prompted traders to scale back expectations of near-term Federal Reserve rate hikes. Economic data released earlier this week showed US consumer inflation increased less than expected in June, while producer prices unexpectedly fell. Meanwhile, initial jobless claims dropped to two-month lows. Markets have now largely ruled out a Fed rate hike this month, though expectations remain split over the possibility of a move in September.
The USD/CHF pair could lose ground as the Swiss Franc (CHF) may receive support amid escalating hostilities in the Middle East. Renewed tensions have pushed oil prices higher, prompting markets to reassess the outlook for global growth, inflation, and monetary policy.
The Swiss National Bank left its policy rate unchanged at 0% in June, stating that the medium-term inflation outlook had changed little. However, the meeting minutes revealed that policymakers acknowledged geopolitical tensions had increased near-term inflation risks.
Swiss Franc FAQs
The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.
The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.
The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.
Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.
As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.
- Stock markets in the Asian region faces major sell-off, tracking weakness in US tech stocks.
- Chipmakers continue to express confidence that AI spending remains robust.
- Elevated oil prices could add burden on Asian economies.
Asian stock markets face a sharp sell-off on the last trading day of the week, tracking seeking negative cues from United States (US) equity markets. US technology stocks fell sharply on Thursday as stocks of sophisticated chips extended their losses.
During the day, Nikkei has fallen like a house of cards, trading over 4% down near 64,100, Shanghai plunges 1.55% to near 3,820, Hang Seng plummets 1.64% at around 24,600. Meanwhile, South Korean markets are closed today due to Constitution Day.
Chipmakers face heat on Thursday after Alphabet Inc. delayed the release of its flagship Gemini 3.5 Pro AI model, leading to concerns over capital spending on Artificial Intelligence. However, chip manufacturers have posted strong second-quarter earnings and have hiked their revenue guidance for forthcoming quarters.
Taiwan Semiconductor Manufacturing Co. (TSMC) has raised its full-year 2026 revenue growth guidance to slightly above 40%, up from more than 30%, Yahoo Finance reported.
Meanwhile, weak revenue guidance from Netflix also hurted US stocks. The entertainment tech- giant guided $12.86 billion for the third quarter this year, a little over $12.6 billion reported in the second quarter, citing concerns in subscribers’ growth as platform is in a matured stage.
On the geopolitical front, the continued military aggression between the US and Iran is also impacting Asian equity markets. Elevated oil prices are increasing the burden of higher foreign outflows on Asian economies, given that they rely heavily on crude imports to meet their energy needs.
Asian stocks FAQs
Asia contributes around 70% of global economic growth and hosts several key stock market indices. Among the region’s developed economies, the Japanese Nikkei – which represents 225 companies on the Tokyo stock exchange – and the South Korean Kospi stand out. China has three important indices: the Hong Kong Hang Seng, the Shanghai Composite and the Shenzhen Composite. As a big emerging economy, Indian equities are also catching the attention of investors, who increasingly invest in companies in the Sensex and Nifty indices.
Asia’s main economies are different, and each has specific sectors to pay attention to. Technology companies dominate in indices in Japan, South Korea, and increasingly, China. Financial services are leading stock markets such as Hong Kong or Singapore, considered key hubs for the sector. Manufacturing is also big in China and Japan, with a strong focus on automobile production or electronics. The growing middle class in countries like China and India is also giving more and more prominence to companies focused on retail and e-commerce.
Many different factors drive Asian stock market indices, but the main factor behind their performance is the aggregate results of the component companies revealed in their quarterly and annual earnings reports. The economic fundamentals of each country, as well as their central bank decisions or their government’s fiscal policies, are also important factors. More broadly, political stability, technological progress or the rule of law can also impact equity markets. The performance of US equity indices is also a factor as, more often than not, Asian markets take the lead from Wall Street stocks overnight. Finally, the broader risk sentiment in markets also plays a role as equities are considered a risky investment compared to other investment options such as fixed-income securities.
Investing in equities is risky by itself, but investing in Asian stocks comes along with region-specific risks to be taken into account. Asian countries have a wide range of political systems, from full democracies to dictatorships, so their political stability, transparency, rule of law or corporate governance requirements may diverge considerably. Geopolitical events such as trade disputes or territorial conflicts can lead to volatility in stock markets, as can natural disasters. Moreover, currency fluctuations can also have an impact on the valuation of Asian stock markets. This is particularly true in export-oriented economies, which tend to suffer from a stronger currency and benefit from a weaker one as their products become cheaper abroad.
- EUR/JPY may find immediate resistance at the ascending triangle top near 186.00.
- The 14-day Relative Strength Index is at 55.17, indicating steady, sustainable bullish momentum.
- The currency cross could find the initial support at the nine-day EMA at 185.42.
EUR/JPY extends its losses for the second consecutive day, trading around 185.70 during the Asian hours on Friday. The currency cross is holding above both the nine-period and 50-period Exponential Moving Averages (EMAs), which reinforces a constructive near-term bias. The 14-day Relative Strength Index (RSI) sits at 55.17, neutral-to-positive territory, suggesting steady bullish momentum rather than an overstretched rally.
The daily chart technical analysis shows the EUR/JPY cross is pressing against ascending triangle resistance near 186.00. This flat ceiling, combined with shallower dips, signals aggressive buying pressure. Because bulls are consistently absorbing the supply at this level, momentum is heavily building for an imminent upside breakout. A decisive daily close above this upper boundary typically triggers a powerful bullish continuation, which could expose the all-time high of 187.95, which was recorded on April 17.
On the downside, primary support lies at the nine-day EMA at 185.42, followed by the 50-day EMA at 185.09. Further declines would put downward pressure on the EUR/JPY cross to test the ascending triangle’s lower boundary around 184.80. A break below the triangle would expose the four-month low of 181.87, recorded on March 16, and the six-month low of 180.81.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.02% | 0.06% | 0.00% | -0.04% | 0.12% | 0.04% | 0.00% | |
| EUR | -0.02% | 0.06% | -0.04% | -0.09% | 0.13% | 0.03% | -0.02% | |
| GBP | -0.06% | -0.06% | -0.09% | -0.14% | 0.06% | -0.02% | -0.08% | |
| JPY | 0.00% | 0.04% | 0.09% | -0.03% | 0.15% | 0.04% | 0.01% | |
| CAD | 0.04% | 0.09% | 0.14% | 0.03% | 0.19% | 0.09% | 0.05% | |
| AUD | -0.12% | -0.13% | -0.06% | -0.15% | -0.19% | -0.11% | -0.14% | |
| NZD | -0.04% | -0.03% | 0.02% | -0.04% | -0.09% | 0.11% | -0.04% | |
| CHF | -0.00% | 0.02% | 0.08% | -0.01% | -0.05% | 0.14% | 0.04% |
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 Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
- USD/CNH climbs as rising Middle East tensions drive investors toward the US Dollar as a safe-haven asset.
- Iran told Houthi rebels to block the Red Sea oil route if the US attacks Iranian infrastructure.
- Economists and an adviser say China can stabilize growth by fast-tracking already-budgeted national infrastructure projects this year.
USD/CNH gains ground for the second successive day, trading around 6.7760 during the Asian hours on Friday. The pair appreciates as the US Dollar (USD) receives support from escalating developments surrounding conflicts in the Middle East.
Reuters reported on Thursday that Iran has instructed Yemen’s Houthi militia to stand ready to close the critical Red Sea oil route if the United States strikes Iranian power infrastructure, presenting a potent new threat to global energy supplies. Amplifying these concerns, the Tasnim news agency reported explosions in Bandar Abbas, Qeshm, and Ahvaz, while very loud explosions were also heard in Kuwait and as far away as Basra.
These geopolitical flare-ups follow threats made earlier this week by US President Donald Trump, who stated the US would strike Iran's bridges and power plants next week if the country does not return to the negotiating table. Ultimately, these signs of escalating tensions in the Middle East could boost safe-haven currencies like the US Dollar, potentially creating a strong tailwind for the USD/CNH pair in the near term.
China can stabilize its economic growth this year by fast-tracking already-budgeted national infrastructure projects, according to economists and a government adviser. This approach reduces the likelihood of large-scale fiscal stimulus. The strategy allows Beijing to counter an unexpected, broad decline in investment—which recent data showed has dragged down growth—while maintaining strict control over local government spending, per Reuters.
Risk sentiment FAQs
In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.
Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.
The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.
The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.
- USD/JPY trades with mild gains around 162.40 in Friday’s Asian session.
- The US is carrying out major strikes on Iran for the sixth consecutive day, lifting the US Dollar.
- Japan’s Katayama said authorities are ready to act on currency moves whenever necessary.
The USD/JPY pair posts modest gains near 162.40 during the Asian trading hours on Friday. The US Dollar (USD) strengthens against the Japanese Yen (JPY) as the United States (US) launches a new wave of strikes against Iran for a sixth night in a row. Traders will keep an eye on the preliminary reading of the Michigan Consumer Sentiment Index for July later on Friday.
The US Central Command (CENTCOM) said on Thursday that it launched a new wave of strikes against Iran for a sixth night in a row, per the BBC. The US military said that the attacks were intended to "further degrade Iranian military capabilities" before saying it had boarded a vessel as part of its blockade of the Strait of Hormuz.
Iran's state media reported US missiles struck close to the island of Qeshm, near the strait, as well as in Bandar Abbas and Bushehr, the site of a nuclear power plant. Earlier this week, US President Donald Trump threatened to strike Iran's bridges and power plants if the country did not return to talks. Renewed Hormuz hostilities could boost the Greenback against the JPY in the near term.
Kyodo News Agency reported on Friday that the Japanese government will state in its economic blueprint that decisions on specific monetary policy tools should be left to the Bank of Japan (BoJ). A final version of the blueprint will also state that the government will reach a decision "by early August" on whether and by how much Japan will cut 8% consumption tax levied on food.
Traders remain on alert for possible intervention from Japanese officials. Japan’s Finance Minister Satsuki Katayama said on Friday that the authorities are ready to act on currency moves whenever necessary.
Japanese Yen FAQs
The Japanese Yen (JPY) is one of the world’s most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan’s policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.
One of the Bank of Japan’s mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.
Over the last decade, the BoJ’s stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.
The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen’s value against other currencies seen as more risky to invest in.
- AUD/USD attracts some sellers for the second straight day amid a modest USD uptick.
- Escalating US-Iran tensions, reviving inflation fears, and Fed hike bets underpin the buck.
- The RBA’s relatively hawkish stance and steady data from China could support the AUD.
The AUD/USD pair remains on the back foot for the second straight day and slides to the 0.7980 region during the Asian session on Friday. Nevertheless, spot prices seem poised to register gains for the third week in a row and remain within striking distance of a nearly three-week high, touched on Wednesday.
The US Dollar (USD) looks to build on the previous day's goodish recovery from a nearly one-month low amid a combination of supporting factors and exerts some downward pressure on the AUD/USD pair. Further escalation of tensions between the US and Iran keeps geopolitical risk in play. Furthermore, concerns about energy-driven inflation revive bets for a US Federal Reserve (Fed) rate hike in 2026 and underpin the safe-haven Greenback.
In the latest developments surrounding the Middle East crisis, the US stepped up its attacks on Thursday and carried out a sixth consecutive night of air strikes against Iran. The US also struck an empty oil tanker headed for Kharg Island as part of its renewed naval blockade of Iranian ports. Tehran responded by attacking US military facilities across the region, raising fears of a return to all-out war and triggering the global flight to safety.
Iran's Islamic Revolutionary Guard Corps had threatened to expand the conflict by targeting additional regional energy supply routes. Furthermore, Reuters reported that Iran has asked Yemen’s Houthis to stand ready to close the Red Sea oil route, posing a potent new threat to global energy supplies. This remains supportive of elevated crude oil prices, fueling inflation fears and bolstering bets for at least one Fed rate hike by the year-end.
Market expectations were reaffirmed by Thursday's upbeat US Initial Jobless Claims data and the Philly Fed Manufacturing Index. Adding to this, Dallas Fed President Lorie Logan called on Thursday for modestly higher interest rates to win a battle the central bank has been losing for the past five years. Separately, Fed Vice Chair Philip Jefferson said that he would be open to raising rates if inflation does not show near-term improvement.
The aforementioned fundamental backdrop favors the USD bulls and backs the case for a further depreciating move for the AUD/USD pair. However, the Reserve Bank of Australia's (RBA) relatively hawkish stance, along with steady economic data from China, could lend support to the China-proxy Australian Dollar (AUD), warranting caution before placing aggressive bearish bets on the currency pair and positioning for deeper losses.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.00% | 0.07% | 0.03% | -0.04% | 0.17% | 0.09% | 0.00% | |
| EUR | -0.01% | 0.07% | 0.00% | -0.07% | 0.17% | 0.09% | -0.01% | |
| GBP | -0.07% | -0.07% | -0.09% | -0.14% | 0.09% | 0.03% | -0.08% | |
| JPY | -0.03% | 0.00% | 0.09% | -0.06% | 0.16% | 0.06% | -0.01% | |
| CAD | 0.04% | 0.07% | 0.14% | 0.06% | 0.22% | 0.14% | 0.04% | |
| AUD | -0.17% | -0.17% | -0.09% | -0.16% | -0.22% | -0.09% | -0.18% | |
| NZD | -0.09% | -0.09% | -0.03% | -0.06% | -0.14% | 0.09% | -0.09% | |
| CHF | -0.00% | 0.01% | 0.08% | 0.01% | -0.04% | 0.18% | 0.09% |
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 US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
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