USDJPY maintains its winning streak despite hawkish attitude about the Fed’s monetary policy stance.

USDJPY is trading around 155.30 in the early European session on Wednesday, marking the third consecutive day of advances. The US Dollar (USD) strengthened as the Federal Reserve (Fed) considered extending higher interest rates. Furthermore, hawkish words from Minneapolis Fed President Neel Kashkari have boosted the Greenback, supporting the USDJPY pair.

Kashkari predicts that high interest rates will persist and that more rate hikes are not entirely out of the question.

As reported by Reuters on Tuesday, President Kashkari’s words imply an expectation of Interest rates have remained stable for an extended period. While the chance of rate hikes is low, they are not completely eliminated.

According to Bloomberg, Richmond Federal Reserve (Fed) President Thomas Barkin stated on Monday that rising interest rates could likely slow economic growth in the United States. However, higher interest rates can help to reduce inflationary pressures, bringing them closer to the central bank’s 2% target.

USDJPY fell in value despite the possibility of Japanese government intervention.

The Japanese yen (JPY) rose this week on speculation of a possible intervention by Japanese authorities. According to Reuters, the Bank of Japan (BoJ) may have authorized up to ¥6.0 trillion on April 29 and ¥3.66 trillion on May 1 to strengthen the Japanese yen. Given the high level of interest, these actions may only bring brief relief. Rate differentials between Japan and the United States.

Despite Japanese officials’ repeated warnings against dramatic currency swings, the Japanese yen fell. Finance Minister Shunich Suzuki emphasized the government’s readiness to respond to excessive foreign exchange volatility, while Bank of Japan (BoJ) Governor Kazuo Ueda noted that they will analyze the impact of Yen movements on inflation to influence policy actions.