Yen exchange rate today
According to Lao Dong, on May 29, the Japanese Yen (JPY) continued to depreciate against the USD in the Asian trading session.
The main reason comes from a new ruling by the US federal court, when the agency blocked former President Donald Trump's plan to impose a new tax, which was called the "Liberation Day" tax.
The ruling has strengthened market sentiment, with investors stepping up buying in stocks, reducing demand for safe-haven assets such as the yen. Asian stocks and Wall Street futures both increased sharply after this information.
Yen depreciates as market sentiment gradually improves
According to FXStreet, concerns about the public debt situation in Japan are also affecting investor sentiment. Recently, Japan's long-term government bond auction recorded its lowest purchase volume since July 2024. This shows that confidence in the country's public finance is declining, contributing to the pressure on the Yen.
Meanwhile, the dollar is supported by the cash flow after the latest meeting of the US Federal Reserve (Fed). The record shows that the Fed is still cautious and has not yet cut interest rates in the context of many instability about economic and trade prospects. However, according to CME Group's forecast tool, the Fed possibility of reducing interest rates twice this year is still expected by the market.
In contrast, in Japan, many investors are betting that the Bank of Japan (BoJ) will continue to raise interest rates this year or early next year, as domestic inflation shows signs of spreading. This expectation helps to somewhat limit the decline of the Yen.
Currently, the market is paying attention to some important US economic data to be released today, including: Q1 GDP (pre-pre-emptive), unemployment claims and pending home sales. Along with that, statements by Fed officials will also have a big impact on the short-term USD/JPY exchange rate.
