Yen exchange rate today
According to Lao Dong, on May 13, the Japanese Yen (JPY) continued to increase in price, causing the USD/JPY exchange rate to decrease to about 147.90, despite prolonged instability in the interest rate policy of the Bank of Japan (BoJ).
This increase comes after the pair had a strong start, the Yen depreciated more than 2% in the previous session.
The market is more cautious, helping the Yen benefit
The main reason for the rehabilitation is the cautious psychology of the market against Japanese monetary policy prospects and the fluctuations in the US -China trade relations. Although BoJ has not issued any clear signal about strong interest rates, recent statements from senior officials show that the bank is closely monitoring the situation and does not rule out the possibility of continuing interest rates.
BoJ Deputy Governor Shinichi Uchida said the Japanese economy is facing many risks from the possibility of the US imposing new tariffs, but there are also positive points such as a tight labor market and steady salary increases. He said that Japanese enterprises are likely to continue to shift the increase in labor costs to product prices, contributing to pushing core inflation up in the coming time.
Japanese Finance Minister Katsunobu Kato also said he may meet with US Finance Minister Scott Bessent to discuss exchange rates and tariffs. Although he did not directly comment on the current exchange rate, Mr. Kato emphasized that Japan is closely monitoring trade negotiations between the US and China, because they can have a big impact on the global economic outlook and the Yen.
Minutes from the recent BoJ meeting showed that the bank's internal opinions were still divided. Some members believe the BoJ should continue raising interest rates if the economy and inflation continue to improve, while others call for caution because real interest rates are still negative.
In that context, the increase in the Yen shows that investors are gradually returning to safe assets, especially when the market is still unclear about the next direction of global monetary policy. Investors are also waiting for the US inflation report (CPI) for April to be released later in the day, which is expected to have a major impact on exchange rate movements in the short term.
