Yen exchange rate today
According to Lao Dong, on May 30, the Japanese Yen (JPY) suddenly recovered from a two-week low against the USD in the context of the global market being affected by trade policy developments and newly released economic data from both Japan and the US.
The JPY has received strong support after a US federal appeal court unexpectedly restored large-scale trade tariffs under former President Donald Trump last night. This decision increased market instability, causing investors to return to safe-haven assets such as the Japanese Yen.
Yen suddenly reverses to increase
According to FXStreet, a series of positive economic data from Japan released this morning has reinforced expectations that the Bank of Japan (BoJ) will continue to tighten monetary policy. The consumer price index (CPI) in Tokyo increased 3.4% year-on-year in May, while the core CPI (excluding fresh food) increased 3.6%, exceeding market forecasts. This is the third consecutive month that the index has exceeded the BoJ's 2% target, showing that inflation especially food prices remains high.
In addition, Japan's retail sales in April increased by 3.3% over the same period, higher than expected, and are expected to be further strengthened by widespread salary increases. Industrial output fell 0.9% in April, but lower than the forecast decline, while the survey showed that output could increase sharply in May.
However, JPY's increasing momentum temporarily slowed down when the dollar recovered slightly before the PCE Index announcing the favorite inflation measure of the US Federal Reserve (Fed). Earlier, the data showed that the US GDP in the first quarter fell 0.2%, less than forecast, and the number of unemployment benefits for the first time increased sharply to 240,000, causing the market to closely monitor the Fed ability to adjust the interest rate policy in the coming time.
