JPY & PHP - Markets & outlook
Japanese yen - JPY:
November 11, 2025
Key Developments Affecting the Japanese Yen (JPY):
1. Monetary Policy Divergence: The Bank of Japan (BOJ) maintains a cautious approach to interest rate hikes, with the 10-year government bond yield around 1.6%, compared to the U.S. 10-year Treasury yield near 4.1%. This significant yield differential continues to pressure the yen. (ebc.com)
2. Political Leadership Change: Sanae Takaichi's election as Japan's first female prime minister has led to expectations of expansionary fiscal policies, contributing to the yen's depreciation. (reuters.com)
3. Fiscal Stimulus Plans: The new administration is preparing a comprehensive economic package to support households, potentially increasing government debt and influencing the yen's value. (reuters.com)
4. International Relations: Japan has urged G7 members to remain vigilant against excessive volatility in foreign exchange markets, highlighting concerns over the yen's rapid decline. (reuters.com)
Recent Developments Impacting the Japanese Yen:
- Yen, bonds sell off as Takaichi win spurs bets on fiscal easing, Published on Sunday, October 05
- Yen weakens after Takaichi elected as Japan's PM, Published on Monday, October 20news14
Philippine peso - PHP:
November 11, 2025
Key Developments Affecting the Philippine Peso (PHP):
1. Subdued Inflation Opens Door for Rate Cuts: October 2025 saw inflation hold steady at 1.7%, below the Bangko Sentral ng Pilipinas (BSP) target. This trend may lead to a 25 basis point rate cut in December to support economic growth. (reuters.com)
2. Peso Depreciation Amid Economic Concerns: The peso weakened to a record low of 59.262 per US dollar on October 28, influenced by market worries over potential economic slowdown due to infrastructure spending issues and expectations of further BSP rate cuts. (en.moneyandbanking.co.th)
3. Overvaluation of Peso Impacts Competitiveness: ANZ Research highlighted that the peso has been overvalued since 2019, affecting the manufacturing sector and export competitiveness. (businessmirror.com.ph)
4. Trade Deficit and Remittances Affect Currency Strength: The Philippines' trade deficit, around $43 billion or 10% of GDP, and remittances from Overseas Filipino Workers (OFWs) at $34 billion in 2024, influence the peso's value. (hippohomesph.com)
Subdued Philippine Inflation Leaves Door Open for December Rate Cut:
- Subdued Philippine inflation leaves door open for December rate cut, Published on Tuesday, November 04
