Yen exchange rate today
According to Lao Dong, on April 3, the Japanese Yen (JPY) increased sharply against the US Dollar (USD) as investors sought safe-haven assets. The main reason is the decision of US President Donald Trump to impose counterpart tariffs on all imported goods, raising concerns about global economic growth.
The latest update shows that the JPY vs USD exchange rate is currently fluctuating around 147,000 USD/JPY; meaning 1 USD is worth about 147 JPY, up nearly 1.5 percentage points compared to yesterday's session. Thus, the Yen increased to a record level, reaching its highest level since October last year.
Global instability causes Yen to increase to a record level
Immediately after the US announcement, the global financial market reacted negatively. Securities plummeted, with US 10-year government bond yields falling to nearly 4.0% - the lowest level since the beginning of the year. In this context, the Yen has become a safe choice for investors, pushing the USD/JPY exchange rate to its lowest level in more than three weeks.
In addition, expectations for monetary policy also contributed to the increase of the Yen. Many investors believe that the Bank of Japan (BoJ) will continue to raise interest rates due to expanding domestic inflation.
In contrast, the US Federal Reserve (Fed) may soon cut interest rates to support the economy in the face of negative impacts from tariffs. If this happens, the interest rate gap between the US and Japan will narrow, making the Yen more attractive compared to the USD.
In addition, Japanese Prime Minister Shigeru Ishiba also said he was ready to work directly with President Trump to ask the US to review the tariffs, which could impact Japan's policies in the coming time.
With the current situation, the Yen is still benefiting from the risk-off sentiment globally. If trade tensions continue to escalate, this currency may increase even more strongly in the coming time.
