The Japanese Yen weakened against the US dollar, reversing earlier gains. The dollar found support despite ongoing trade uncertainties stemming from US tariff policies. Concerns about the Bank of Japan’s (BoJ) potential interest rate hikes and political factors in Japan also contributed to the Yen’s decline.
- The Japanese Yen weakened to around 155 per dollar.
- Reports indicate that US authorities proactively conducted rate checks last month to support the yen.
- Japan’s PM Takaichi voiced concerns to BoJ Governor Ueda on interest rate hikes, further weakening the Yen.
- Soft National Consumer Price Index (CPI) data for January has raised concerns over the Bank of Japan’s interest rate hike expectations.
- US President Donald Trump threatened to raise global tariffs from 10% to 15%.
Overall, the Yen is facing downward pressure due to a combination of factors, including US trade policies, concerns about the BoJ’s monetary policy, and domestic political uncertainty. This confluence of factors suggests the Yen may remain weak in the short term.