The yen rose in Asian trade on Thursday on track for the fourth straight profit against the dollar, hitting a two-month high on strong investment demand. 

Recent bullish remarks from some Bank of Japan officials bolstered the odds of a Japanese interest rate hike in March as investors await more clues on Japan’s inflation, wages, and unemployment. 

The yen is also boosted by a drop in US 10-year treasury yields as global trade concerns calmed down, and after weak US services data.

The Price

The USD/JPY pair fell 0.5% today to 151.80 yen per dollar, the lowest since December 12, with a session-high at 152.75.

The yen rose 1.15% on Wednesday against the dollar, marking the biggest profit in 2025.

It came after Tokyo data showed Japanese wages rose in December to a two-year high.

Japanese Rates

Following the wages data, the odds of a BOJ rate hike in March rose from 50% to 60%.

Bullish Remarks 

BOJ member Naoki Tamura said on Wednesday that hiking rates to 1% is necessary by the second half of the 2025 financial year to combat inflation due to higher commodity and labor costs.

US Yields

US 10-year treasury yields fell 0.25% on Thursday on track to hit seven-week lows at 4.400%, hurting the dollar’s standing.

It comes as markets calm down in regards to global trade war concerns, and after earlier data showed the US services sector slowed down unexpectedly in January as demand slowed.

Gold prices rose on Wednesday to fresh record highs as the dollar dipped against most major rivals, with the precious metal surpassing $2900 for the first time ever. 

Earlier data showed the US private sector added 183 thousand jobs in January, beating estimates of 150 thousand. 

The US ISM services PMI fell to 52.8 in January from 54 in December, missing estimates of 54.2. 

SPDR analysts expect gold prices to surpass the $3000 barrier later this year on strong haven demand, amid concerns about a trade war instigated by the US. 

Otherwise, the dollar index fell 0.3% as of 20:19 GMT to 107.6, with a session-high at 108.05, and a low at 107.3.

On trading, gold spot prices rose 0.3% as of 20:27 GMT to $2885 an ounce.

The New Zealand dollar rose against most major rivals on Wednesday as the US dollar weakened, and after important data.

New Zealand’s employment change fell 0.1% in the last quarter of 2024, beating estimates of a 0.2% drop.

New Zealand’s unemployment rose to 5.1% as expected in the fourth quarter of last year from 4.8%. 

On trading, the NZD/USD pair rose 0.6% as of 20:28 GMT to 0.5686.

Aussie

The Australian dollar rose 0.5% against its US counterpart to 0.6285.

US Dollar

The dollar index fell 0.3% as of 20:19 GMT to 107.6, with a session-high at 108.5, and a low at 107.3.

Earlier data showed the US private sector added 183 thousand jobs in January, beating estimates of 150 thousand. 

The US ISM services PMI fell to 52.8 in January from 54 in December, missing estimates of 54.2. 

The Energy Information Administration reported a huge buildup of 8.7 million barrels in US crude stocks last week to a total of 423.8 million barrels, while analysts only expected a build of 1.3 million barrels.

Gasoline stocks rose 2.2 million barrels to 251.1 million barrels, while distillate stocks fell 5.5 million barrels to 118.5 million barrels.