The yen exchange rate today
As noted by labor, on April 14, the Japanese Yen (JPY) is maintaining a sharp increase and is now close to the highest level since the end of September, 2024 compared to the US dollar (USD).
The main cause comes from the weakness of the USD and the wave of safe asset search in the context of escalating trade tensions.
Latest updates, JPY exchange rate compared to USD currently ranges from 142,823 USD/JPY; ie 1 USD exchanged about 142 JPY.
The trade war escalated, the yen benefit
Trade tensions among major economies in the world are causing many investors to turn to safe assets like Yen Nhat.
According to FXstreet, the expectation of an active trade agreement between the US and Japan is also supporting JPY's rise. Mr. Trump said the two sides are establishing "tough but fair" conditions to negotiate, while the US Finance Secretary emphasizes that Japan is one of the top priorities in the tax policy.
On the Japanese side, senior leaders also spoke about the current situation. Prime Minister Shigeru Ishiba warned that the new US tax rate could disturb the global economic order. The Japanese Finance Minister and the Economic Minister also affirmed that it is working closely with the US to stabilize the exchange rate.
In addition to trade factors, Japanese internal economic factors are also promoting the Yen. The latest report shows that inflation in Japan increased by 4.2% in March, showing that inflationary pressure was still high. This strengthens the possibility that the Central Bank of Japan (BOJ) will continue to raise interest rates in 2025 - in contrast to the US.
In the opposite direction, inflation in the US is showing signs of cooling down, along with confidence in the US economy decline, causing investors to believe that the Federal Reserve (Fed) will soon resume the interest rate reduction cycle. The market is currently forecasting that Fed can lower the interest rate of 90 basic points before the end of this year.
