Yen exchange rate today
According to Lao Dong, on April 24, the Japanese Yen (JPY) maintained a positive trend, thanks to growing concerns about the possibility of resolving US-China trade tensions soon. Investors continue to look to the JPY as a safe-haven asset. At the same time, expectations of Japan reaching a trade agreement with the US and the possibility of the Bank of Japan (BoJ) continuing to raise interest rates also support this domestic currency.
However, positive sentiment in the stock market due to expectations of cooling down US-China tensions and confidence in the independence of the US Federal Reserve (Fed) are holding back the strong increase of the JPY. The USD is still trading below 143 JPY/USD.
Yen is held back but continues to increase
US President Donald Trump has said the 145% tariff on Chinese goods will be significantly reduced, but the US Treasury Secretary denied the information that the White House intends to unilaterally cut taxes. This has led to a decline in expectations for an early trade deal between the two countries, boosting capital flows into the Yen.
The Japanese Finance Minister called the US tax policy "disappointing," while the country's Minister of Economic Rehabilitation will go to the US for talks at the end of April. Meanwhile, the BoJ Governor warned that there could be intervention if the Japanese economy is negatively affected by new tariffs.
However, investors still believe that the BoJ will continue to raise interest rates in 2025 as inflation remains around the 2% target, while the Fed is expected to start cutting interest rates from June. This policy difference continues to be a supporting factor for the JPY.
