The U.S. dollar weakened against the yen on Thursday, as softer-than-expected U.S. economic data and growing confidence for a Bank of Japan interest-rate hike sent it tumbling to a near one-month low against the Japanese currency.

SINGAPORE--The yen was poised on Friday for its strongest weekly performance in over a month as expectations grow that the Bank of Japan will raise rates next week, putting the dollar on the back foot ahead of Donald Trump’s return to the White House.

The USD/JPY climbed on Friday as the Japanese yen weakened, with markets focused on the upcoming BoJ rate decision. The BoJs next rate hike is now anticipated at the January Monetary Policy Meeting, moving up from

Looking back, yen-funded carry trades have turned out to be among the most profitable plays this year. Of 20 major emerging markets currencies, all generated positive total returns, led by the Turkish lira’s 19% and Mexican peso’s 14%.

The Japanese yen was at its strongest versus the dollar in nine days after Japan's government bond yields hit another cycle high. The 10-year JGB yield was up 1.5 basis points early Wednesday, trading at 1.

The USD/JPY exchange rate has hovered at its highest level since July 17, after the latest Japanese wage income data. The pair, which is the third most popular forex cross, traded at 158.05, up by 13.

BoJ and RBA decisions dominate 2025’s early trends. Wage growth, inflation, and China’s stimulus measures drive Forex markets. Read key insights here.

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Our weekly simulation for Japanese Government Bond Yields and the Yen. Read the latest update, as of January 10, 2025.

The U.S. dollar weakened against the yen on Thursday, as softer-than-expected U.S. economic data and growing confidence for a Bank of Japan interest-rate hike sent it tumbling to a near one-month low against the Japanese currency.

Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances.

MSCI's global equities index rose on Friday while U.S. Treasury yields turned higher and the latest crop of economic data and upbeat earnings reports gave some support to riskier assets. The U.S. dollar strengthened against the yen and clawed back some of Thursday's declines against major peers,