FX.co ★ Japanese Yen Rises on Solid Domestic Data

The Japanese yen strengthened to approximately 144 per dollar on Friday, recovering from the previous day's losses. This appreciation was fueled by stronger-than-anticipated economic metrics that heightened expectations of a more aggressive approach from the Bank of Japan. Notably, household spending surged by 4.7% year-over-year in May, a significant turnaround from April’s marginal 0.1% decline, and far surpassing the projected 1.2% increase. This jump indicates intensified efforts by Tokyo to invigorate domestic consumption. Additionally, the yen found support in a weakening US dollar, which was affected by renewed apprehensions regarding trade tariffs. President Donald Trump announced intentions to start issuing communications on trade issues, potentially setting unilateral tariff rates. Previously, Trump has threatened imposing tariffs of up to 35% on Japanese goods, driven by dissatisfaction over Japan's limited purchases of American rice and automobiles.