Yen exchange rate today
According to Lao Dong, on June 11, the Japanese Yen (JPY) continued to depreciate for the second consecutive day and is currently trading near its lowest level in two weeks against the US Dollar (USD) which is widely strengthening.
Optimism on progress in US-China trade negotiations has fueled risk-off sentiment in the market, reducing demand for the JPY - which is considered a safe-haven asset.
The USD/JPY pair fluctuated near the psychological threshold of 145.00, supported by the buying force of USD.
Yen struggles, may not decrease sharply
However, the Yen's weakening may be limited by expectations that the Bank of Japan (BoJ) will continue to raise interest rates this year. In contrast, the US Federal Reserve (Fed) is expected to cut interest rates in 2025, putting pressure on the USD and partially supporting the JPY.
Market sentiment is currently quite cautious as investors await US consumer inflation (CPI) data, expected to be released in the North American trading session on the same day. This data will be an important signal on the Fed's interest rate policy orientation in the coming time.
Internationally, investors are closely watching the results of the US-China trade talks in London. China's Deputy Minister of Commerce, Mr. Li Cheng Qiang, said that the two sides have reached a preliminary trade framework. The US Secretary of Commerce also confirmed that this is an important step forward towards solving the problem of rare earths and technology supply chains.
However, the Yen is still supported by domestic factors. The latest data shows that the Japanese economy in the first quarter of 2025 declined slightly compared to expected, while inflation showed signs of spreading which further reinforced the possibility of the BoJ continuing to normalise monetary policy.
In addition, expectations of a Fed rate cut are weakening after the US jobs report (NFP) released last week showed a stable labor market. However, investors are still pricing in the possibility of a Fed easing of about 0.45% from now until the end of the year, contrary to the BoJ's strong stance.
