FX.co ★ Japanese Yen Holds Decline on Trade Concerns

The Japanese yen hovered around 145 per dollar on Friday after experiencing a decline of nearly 1% in the prior session. This depreciation was largely attributed to uncertainties surrounding trade, despite Tokyo's efforts to finalize an agreement with Washington before the looming deadline next week. President Donald Trump announced his intention to begin distributing formal notices regarding trade tariffs as early as today, potentially heralding new tariff rates or extensions of current deadlines. Trump has previously suggested imposing tariffs of up to 35% on Japanese products, citing Japan's limited importation of American rice and automobiles as points of contention. Further contributing to the yen's decline was the strengthening of the US dollar, which gained momentum following a June jobs report that exceeded expectations, alleviating recession concerns and diminishing the likelihood of immediate interest rate cuts by the Federal Reserve. Domestically, Japan saw a stronger-than-expected rebound in household spending in May, underpinned by governmental initiatives to bolster consumer activity.