Yen exchange rate today
According to Lao Dong on May 22, the Japanese Yen (JPY) continued to increase, after Japan announced data on core machinery orders increasing by 13% in March - the highest level in nearly 20 years and in complete contrast to the forecast of a decrease of 1.6%.
This positive result reinforces expectations that the Bank of Japan (BoJ) will continue its interest rate hike roadmap this year.
Yen Steadily Rises Amidst Storm
According to FXstreet, besides domestic economic factors, the increasing safe asset demand in the context of the instability world also supports JPY. Tensions between the United States and China escalated after Washington warned that companies should not use Huawei AI's AI ascend chip, causing Beijing to accuse the US violating the Geneva trade agreement. Meanwhile, the war situation in Ukraine and Gaza continued to be complicated, contributing to increasing psychology of concerns about global risks.
In the opposite direction, the dollar weakened when investors bet on the possibility that the US Federal Reserve (Fed) will cut interest rates in the coming months. In addition, the new tax bill proposed by US President Donald Trump - called "One Big, Beautiful Bill" - is facing many criticisms when it can increase the budget deficit from US $ 3,000 to $ 5,000 billion in the next 10 years. The gloomy prospects made investors psychology more concerned, continuing to put pressure on the dollar.
In the market, the USD/JPY currency pair is currently trading around the lowest level in two weeks. Analysts said that if there are no new factors supporting the greenback, USD/JPY may continue to weaken in the short term.
