Yen exchange rate today
According to Lao Dong, on March 28, the Japanese Yen (JPY) recovered against the US Dollar when inflation data in Tokyo showed that the consumer price index (CPI) increased by 2.9% in March, higher than the 2.8% of the previous month.
According to FXStreet, core CPI, excluding fresh Japanese food, also increased from 2.2% to 2.4%. Notably, the core CPI for eliminating both fresh food and energy has reached 2.2%, exceeding the Bank of Japan (BoJ)'s 2% target. This raises expectations that the BoJ will continue to raise interest rates in the future.
The JPY fell to its lowest level in nearly four weeks against the USD due to concerns about US tariff policy.
Yen remains under pressure from US tariffs
Recently, President Donald Trump announced a 25% tax rate on imported cars and light trucks, effective from April 3. This has many worried that Japan's automobile industry - which contributes about 3% of GDP - will be severely affected.
In addition, a new report from the BoJ shows that the central bank will still consider raising interest rates if the economy and prices develop as expected. However, they are also cautious about the risks from US tariff policies.
Now, the market is waiting for data from the US personal consumption expenditure (PCE) price index, an important measure to predict the interest rate policy of the Federal Reserve (Fed). If PCE shows that US inflation remains high, the Fed may delay interest rate cuts, support the USD and put pressure on the JPY.
* Information on exchange rates is for reference only and may change from time to time.
Readers can refer to more articles on exchange rates HERE.
