Yen exchange rate today
According to Lao Dong, on August 2, the Japanese Yen (JPY) recorded a strong increase of 2.22% in the last trading session of the week, marking a significant recovery after hitting a bottom for more than 4 months against the USD.
The JPY's rally was driven largely by increased safe-haven sentiment as US President Donald Trump signed a decree to impose higher tariffs on many major trading partners. This development raises new concerns about global trade tensions and makes investors seek defensive assets such as the Yen.
Japanese Yen increases thanks to trade concerns and expectations of BoJ to keep interest rates stable
In addition, the Bank of Japan (BoJ) at its meeting at the end of Thursday decided to keep interest rates and current easing policy unchanged, as expected by the market. The BoJ also raised its core inflation forecast for fiscal 2025 to 2.7%, from 2.2% previously, showing expectations for a continued stable recovery.
Speaking after the meeting, BoJ Governor Kazuo Ueda emphasized that the bank will continue to evaluate economic data flexibly and did not rule out the possibility of raising interest rates if conditions are favorable. However, he also maintained a cautious tone, saying it would take time to monitor the impact of new tariffs and the progress of the US-Japan trade deal.
On the other hand, the USD temporarily stagnated after many strong increases. Although the Fed maintains a hawardly stance on Chairman Jerome Powells comments, the market is awaiting a series of important data from the US, especially the non-farm Payrolls report for July and the ISM manufacturing PMI index both expected to be released later in the day.
