JPY & PHP - Markets & outlook
Japanese yen - JPY:
September 26, 2025
Key Developments Affecting the Japanese Yen (JPY):
1. Bank of Japan's Policy Shift (September 19, 2025): The BOJ maintained its short-term interest rate at 0.5% and announced plans to sell approximately 330 billion yen in exchange-traded funds (ETFs) and 5 billion yen in real estate investment trusts (REITs) annually. This move aims to unwind previous stimulus measures and has led to a modest appreciation of the yen against the U.S. dollar. (reuters.com)
2. Political Uncertainty Following Prime Minister's Resignation (September 7, 2025): The resignation of Prime Minister Shigeru Ishiba introduced policy uncertainty, contributing to a decline in the yen's value. Investors are concerned about potential shifts in fiscal policy and the upcoming leadership election within the ruling party. (reuters.com)
3. U.S. Treasury's Recommendation for Policy Tightening (June 6, 2025): The U.S. Treasury Department urged the BOJ to continue tightening monetary policy to align with domestic economic fundamentals. This recommendation aims to support the normalization of the yen's value against the dollar and rebalance bilateral trade. (reuters.com)
4. Finance Minister's Warning on FX Volatility (March 7, 2025): Finance Minister Katsunobu Kato warned of potential actions against excessive foreign exchange market volatility after the yen reached a five-month high. He emphasized that authorities would respond appropriately to curb rapid and one-sided movements in the currency. (reuters.com)
Recent Developments Impacting the Japanese Yen:
Philippine peso - PHP:
September 26, 2025
Key Developments Affecting the Philippine Peso (PHP):
1. Interest Rate Cuts by Bangko Sentral ng Pilipinas (BSP):
- On August 28, 2025, the BSP reduced its benchmark interest rate by 25 basis points to 5.0%, marking the third consecutive rate cut. This decision aligns with easing inflation and a rebound in the Philippine economy. (reuters.com)
2. Current Account Deficit Forecasts:
- In June 2025, the BSP projected a narrowing of the current account deficit to 3.3% of GDP in 2025 and further to 2.5% in 2026, improving from previous estimates. This adjustment reflects global uncertainties potentially affecting investor confidence. (reuters.com)
3. Inflation Trends:
- In August 2025, the annual inflation rate rose to 1.5%, up from 0.9% in July, driven mainly by increased costs in housing, utilities, and food and beverages. Despite the increase, the year-to-date inflation average stands at 1.7%, still below the BSP's target range. (reuters.com)
4. Political Unrest and Protests:
- In September 2025, widespread protests erupted across the Philippines, demanding government accountability and addressing corruption issues. These demonstrations have led to political instability, which may influence investor sentiment and the PHP's performance. (en.wikipedia.org)
These developments collectively impact the Philippine Peso's exchange rate, influenced by monetary policy decisions, economic indicators, and political events.
