Yen exchange rate today
According to Lao Dong, on July 8, the Japanese Yen (JPY) continued to maintain a downward trend, fluctuating near a two-week low against the USD.
The main reason comes from concerns that US President Donald Trump's new tariff policy could further complicate the monetary policy normalization roadmap of the Bank of Japan (BoJ).
Recently, Mr. Trump announced his first letter on imposing higher tariffs on goods from many major economies, including a 25% tax on Japanese goods.
However, he also extended the new tax deadline to August 1, paving the way for further negotiations.
Japanese Prime Minister Shigeru Ishiba confirmed that the US has proposed continuing negotiations until a new deadline, and said that Japan is still determined to protect its core interests in negotiations.
Investors hold their breath waiting for the Fed and BoJ
According to FXStreet, the stability of global risk sentiment has reduced the need for shelter in the JPY, helping the USD/JPY pair remain stable above 146.00.
However, new geopolitical risks in the Middle East and concerns about the economic impact of new US tariffs are making investors wary, limiting the further decline of the Yen.
In addition, data released on Monday showed that the growth rate of fake wages in Japan has slowed down for the third consecutive month in May 2025, while real wages have adjusted according to inflation to decrease the most in 20 months.
This increases expectations that the BoJ will continue to be cautious in raising interest rates in the coming time, leaving the Yen lacking upward momentum.
On the other hand, the US dollar is not too strong as concerns about US fiscal issues have caused the USD to decline slightly from the once-week peak it just reached. However, US non-farm payrolls (NFP) data released last weekend still showed that the US labor market remains solid, reinforcing expectations that Mr. Trump's new tariffs could boost inflation in the US in the coming time. This could see the US Federal Reserve (Fed) keep interest rates unchanged, supporting the USD ahead of the FOMC meeting minutes this Wednesday.
