USD Supported by Fed Rate Hike Expectations, Weighs on JPY and EUR

The USD/JPY currency pair traded around 161.60 during early Asian trading hours on Wednesday, slightly above the 161.50 level, reflecting a firm US dollar supported by growing expectations of a Federal Reserve interest rate hike this year, according to FX Street.

Meanwhile, the EUR/USD pair weakened below the 1.1400 mark, trading near 1.1380 as the prospect of higher US rates boosted the dollar against the euro, FX Street reported. The anticipation of a Fed rate increase continues to underpin the dollar's strength across major currency pairs.

For Japanese investors, these moves highlight ongoing volatility in FX markets amid tightening US monetary policy, which could impact export competitiveness and portfolio allocations in the months ahead.