FX.co ★ Japanese Yen Weakens on US-China Trade Talks

The Japanese yen slipped beyond the 143 per dollar mark on Wednesday, ending its three-day upward trend. This shift followed the announcement of upcoming US-China trade discussions in Switzerland, which alleviated investor fears and lessened the appeal of safe-haven currencies. Boosting the overall mood across Asia, the People’s Bank of China revealed interest rate cuts designed to stimulate economic growth. Market participants also closely monitored developments in US-Japan trade discussions, with Japan aiming to conclude a bilateral deal by June. Economically, Japan’s services PMI for April received an upward revision, indicating the most significant rise in new orders in nearly a year. Meanwhile, the Bank of Japan maintained its benchmark interest rate at 0.5% last week, while simultaneously lowering its projections for both growth and inflation—suggesting that any potential rate increases are unlikely in the near term.