Yen exchange rate today
According to Lao Dong, on April 28, the Japanese Yen (JPY) increased slightly, temporarily suspending its downward trend against the USD after reaching its highest level in many months. The lack of clarity in signals from the US and China has reduced expectations for a quick resolution of trade conflicts, thereby boosting safe-haven cash flow into the Yen.
The latest update shows that the Yen is currently fluctuating around $143.436/JPY; meaning 1 USD can be exchanged for about 143 JPY.
Yen may continue to increase in the short term
According to FXStreet, expectations of a US-Japan trade deal also provided additional support for the JPY. US Treasury Secretary Scott Bessent said he had a very constructive discussion with his Japanese counterpart, raising hopes for a deal in the future. Meanwhile, Japan has rejected information that the US supports a weak USD and a strong JPY.
On the other hand, investors are now reducing expectations for the possibility of the Bank of Japan (BoJ) continuing to raise interest rates in the short term, due to concerns about the negative impact of new US tariffs, which could cause Japan's GDP to decrease by 0.5%.
However, with inflation remaining above 2% and strong salary increases from large enterprises, the BoJ still has room to tighten monetary policy in 2025, further strengthening the upward prospects for the Yen.
In contrast, the US Federal Reserve (Fed) is expected to begin its interest rate cutting cycle in June, reducing the total by about 1 percentage point this year. The difference in monetary policy between the BoJ and the Fed continues to put pressure on the USD and support the Yen.
Geopolitical tensions escalated as North Korea confirmed it had sent troops to fight with Russia in Ukraine, while the US warned that it could abandon its role as an intermediary if the Russia-Ukraine negotiations did not progress. These risks further increase the demand for shelter in the Yen, suggesting that the currency could continue its upward trend in the short term.
