Yen exchange rate today
According to Lao Dong, on July 15, the Japanese Yen (JPY) continued to maintain its weak momentum, fluctuating around a three-week low against the USD, as concerns about Japan's trade and super-loose monetary policy continued to put pressure, pushing the currency closer to the record weak zone it had recorded.
Investors are increasingly believing that the Bank of Japan (BoJ) will be forced to maintain lower interest rates for longer due to the risk of slowing down the economy if the US imposes a 25% tax on Japanese goods from August 1. This makes the Yen less attractive as a safe-haven asset, despite increased global risks.
Yen may continue to weaken
According to FXStreet, US President Donald Trump said he is ready to resume trade negotiations, creating hope for a US-Japan deal before the August 1 deadline, but this development is not strong enough to help the Yen recover significantly.
In the domestic market, polls show that Prime Minister Shigeru Ishiba's coalition may not hold a majority in the Senate election on July 20, raising concerns about political change. Meanwhile, Japanese government bond yields for 10-year terms rose to a 17-year high, showing uncertain market sentiment.
On the other hand, the US dollar continues to strengthen, hitting its highest level since late June, as expectations of the US Federal Reserve (Fed) to maintain high interest rates to keep inflation under control remain strong, despite higher import taxes.
The market focus is now on the US CPI inflation data released in June tonight, expected to increase by 2.7% over the same period, which could strongly affect the Fed's interest rate expectations and the USD trend.
In that context, the Yen could continue to weaken, approaching the record level it has recorded, if the BoJ cannot signal a policy change in the coming time, and global trade is still unstable.
