Yen exchange rate today
According to Lao Dong, on April 11, the Japanese Yen (JPY) increased impressively against the US Dollar (USD), pushing the USD/JPY exchange rate back to nearly 143.50. This development shows that investors are looking to Yen as a safe haven in the context of a volatile market.
The main reason for the stronger Yen is concerns about a trade war between the US and China. US President Donald Trump has just announced an increase in import tariffs on Chinese goods from 104% to 125%, while temporarily reducing tariffs on goods from a number of other countries. This surprise decision raised concerns that trade tensions will escalate, negatively affecting global economic growth.
The latest update shows that the Yen against the US Dollar fluctuates around $143.8/JPY; meaning 1 USD can be exchanged for about 143 JPY.
Investors seek Yen as a safe haven
Faced with the risk of economic recession, international investors have begun to withdraw from risky assets and turn to the Yen - one of the currencies considered a "safe haven". At the same time, the USD also weakened due to expectations that the US Federal Reserve (Fed) will soon cut interest rates to support the economy.
According to market tracking tool CME FedWatch, the possibility of the Fed cutting interest rates at its May meeting has skyrocketed from 14% to 44% in just one week. Forecasts show that the Fed could cut interest rates by up to 1 percentage point this year - further reducing the USD's appeal.
In contrast to the Fed, the Bank of Japan (BoJ) is holding a tailor stance which is more towards maintaining or raising interest rates to control inflation.
It is the differences in monetary policy orientation between the two countries that have contributed to strengthening the Yen.
In addition, Japanese Finance Minister Shunichi Kato also emphasized in his latest speech that the exchange rate should be regulated by the market, but he warned that too strong fluctuations could negatively affect the Japanese economy.
