FX.co ★ Japanese Yen Eases as Dollar Rebounds

On Thursday, the Japanese yen slipped beyond 142 against the US dollar, retreating from its recent multi-month highs as the US dollar gained momentum following hawkish comments from Federal Reserve Chair Jerome Powell. Powell indicated that the Federal Reserve is not in a hurry to decrease interest rates, citing uncertainties related to trade policy and cautioning that tariffs could elevate inflation levels and impede economic growth. Domestically, Japan faced a disappointing outcome as export growth in March did not meet expectations, largely due to reduced shipments to China and the European Union. Nevertheless, there was a silver lining with a recovery in import growth, suggesting a resilient domestic demand. In the backdrop, Japan’s Economy Minister Ryosei Akazawa stated that foreign exchange was not a topic of discussion during ongoing trade discussions in Washington. Japan remains steadfast in its efforts to secure the full removal of the tariffs imposed by the Trump administration, including a base 10% tariff and an additional 25% levy on car exports.