Yen exchange rate today
According to Lao Dong, the Japanese Yen (JPY) suddenly rebounded as global trade tensions escalated, while the USD weakened slightly.
The latest update at 12:00 on March 27, 2025, the JPY exchange rate against USD is currently fluctuating around 150.224 USD/JPY; meaning 1 USD can be exchanged for about 150 JPY.
Trade tensions support the Yen's appreciation
According to BBC, US President Donald Trump has just announced a plan to impose a 25% tax on all imported cars and foreign auto components from April 2, and is preparing to impose a tax on at least 15 countries next week. This increases concerns about the negative impact on the economy, causing investors to seek safe-haven assets such as the Yen.
In addition, according to FXStreet, the Bank of Japan (BoJ) continues to maintain a tight monetary stance, expecting inflation to reach the 2% target sustainably. Strong salary growth data for three consecutive years further strengthens the possibility that the BoJ will continue to raise interest rates, helping the Yen maintain its upward momentum.
In contrast, the US Federal Reserve (Fed) is expected to cut interest rates twice in 2025, each time by 25 basis points. This creates a big difference with the BoJ and could narrow the interest rate gap between the US and Japan, thereby further supporting the Yen.
However, some Fed officials remain cautious. Chicago branch Fed President Austan Goolsbee said the rate cut could be delayed due to uncertainty in the economy. Meanwhile, Fed Chairman St. Louis, Alberto Musalem, warned that if the labor market continues to be strong and the impact of rising tariffs continues, the Fed may have to maintain higher interest rates for the long term.
In terms of economic data, the US Commerce Department said long-term commodity orders in February increased by 0.9%, higher than expected, but not enough to help the USD maintain high levels. Today, the market will monitor fourth quarter GDP figures, weekly jobless claims and pending home sales.
However, the most important data is the US personal consumption expenditure (PCE) price index tomorrow, March 28, which could affect the Fed's interest rate expectations and strongly impact the USD.
* Information on exchange rates is for reference only and may change from time to time.
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