Yen exchange rate today
According to Lao Dong, on June 4, the Japanese Yen (JPY) continued to weaken against the US Dollar (USD), marking the second consecutive day of decline and reaching the lowest level of the week.
The main reason comes from the cautious statement of the Governor of the Bank of Japan (BoJ) Kazuo Ueda yesterday, causing the market to reduce expectations of the BoJ to soon raise interest rates.
Ueda said there is still much uncertainty in the global economy and trade, while emphasizing that the BoJ has no specific plan to raise interest rates if the economy is not strong enough. This statement has partly undermined confidence that the BoJ will continue to normalize monetary policy in the short term.
Yen is still supported
However, according to FXStreet, some domestic factors supported the Yen. Specifically, Japan's service PMI in May was adjusted up slightly from 50.8 to 51.0 - although lower than the previous month (52.4) but still showing the service sector is expanding. This helps maintain expectations that the BoJ may raise interest rates again in the second half of 2025.
In the opposite direction, the dollar increased slightly by positive economic data. According to the Jolts report published yesterday, the number of empty jobs in the US in April reached 7.39 million - higher than the market prediction. This shows that the US labor market is still quite strong, although the Fed is expected to continue lowering interest rates later this year.
The market is also closely watching the expected phone call between US President Donald Trump and Chinese President Xi Jinping this week, which could take place on Friday. This call is expected to help resume trade negotiations between the world's two largest economies - a factor that can greatly affect global market sentiment.
In the short term, investors are waiting for a series of important US economic data such as the ADP private sector employment report and the ISM service PMI to further assess the health of the economy and monetary policy prospects. These factors will continue to affect the USD/JPY pair in the coming days.
