FX.co ★ Japanese Yen Slips on Dollar Strength

The Japanese yen edged closer to 144 against the dollar on Monday, continuing its decline from last week as the dollar gained strength due to diminishing global trade tensions. Recently, Japanese Finance Minister Katsunobu Kato and US Treasury Secretary Scott Bessent had a private meeting during the IMF and World Bank spring conferences in Washington. Although Kato did not disclose much about their conversation, he highlighted that both nations are committed to maintaining a close and productive dialogue concerning exchange rates, indicating that currency matters might be integrated into broader trade negotiations. In another development, Ryosei Akazawa, Japan’s chief trade negotiator, is scheduled to visit Washington this week for a second round of bilateral discussions. Meanwhile, the Bank of Japan is anticipated to maintain its policy rate at 0.5% this week, as it assesses the possible effects of US tariffs on Japan's economy, which heavily relies on exports.