Yen exchange rate today
According to Lao Dong, on May 5, the Japanese Yen (JPY) continued to strengthen against the US Dollar (USD), pulling the USD/JPY exchange rate to 144.00.
The Yen exchange rate against the US Dollar is currently fluctuating around 144.344 USD/JPY; meaning 1 USD can be exchanged for about 144 JPY.
This is the second consecutive day that the Japanese Yen has maintained its upward momentum, mainly due to two factors: selling pressure on the USD and cash flow into safe-haven assets amid rising global risks.
Yen benefits double
Geopolitical tensions continue to heat up after a series of new developments. The Israeli prime minister pledged to retaliate after pro-Iran Houthi rebels fired missiles near Ben-Gurion airport. In response, Iran said it would counterattack if it were attacked by the US or Israel. Russian President Vladimir Putin also said that Russia has enough strength to bring the Ukrainian war to an end.
At the same time, US President Donald Trump has just announced a 100% tax rate for all imported films, increasing concerns about protectionist policies and economic instability.
These factors have prompted investors to seek shelter assets such as the Japanese Yen, despite the Bank of Japan (BoJ) issuing a signal to maintain monetary policy last week.
Although the BoJ is not ready to raise interest rates in June or July, domestic inflationary pressures and the possibility of sustainable salary increases still leave open the possibility of tightening policy at the end of the year or 2025.
On the other hand, the USD is having difficulty maintaining its upward momentum despite better-than-expected US employment data in April. The US economy added 177,000 jobs, up from the 130,000 forecast, and the unemployment rate remained at 4.2%.
However, concerns about Mr. Trump's new tax policy and price pressure have caused the market to postpone the Federal Reserve's (Fed) interest rate cut expectations from June to July.
