The U.S. dollar came under pressure on Thursday as a resurgent Japanese yen, rising Australian dollar, and steadily strengthening Chinese yuan pushed the greenback toward a weekly loss. Investors are closely watching upcoming U.S. jobs and inflation data for signals on growth and Federal Reserve policy.
The yen has gained more than 2.6% since Japan’s Liberal Democratic Party, led by Prime Minister Sanae Takaichi, secured a landslide victory in Sunday’s election. Market sentiment appears to be shifting from spending fears to growth optimism, boosting confidence in Japanese assets.
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Against the dollar, the yen traded as strong as 152.55 on Wednesday, slightly easing to 153.05 on Thursday. Analysts suggest that further gains could accelerate if the currency breaks resistance around 152 per dollar or surpasses the 200-day moving average near 150.5.
U.S. economic indicators have also influenced currency moves, with stronger-than-expected January job growth and a falling unemployment rate of 4.3% reinforcing investor confidence in the broader U.S. economy. Additionally, a rebound in U.S. factory activity earlier this month supports expectations of steady growth.
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Other major currencies have moved alongside the yen, with the Australian dollar rising above 71 cents amid central bank hints at potential rate hikes. The euro remained firm at $1.1875, sterling held at $1.3628, and the New Zealand dollar hovered around $0.6052.
Meanwhile, China’s yuan continues to strengthen, reaching a 33-month high of 6.9057 per dollar ahead of the Lunar New Year. Strong export performance and regulatory signals favoring a stronger currency have reinforced global investor confidence in Chinese markets.