FX.co ★ Japanese Yen Weakens as Dollar Rebounds

The Japanese yen fell past the 145 per dollar mark, reaching a one-month low as the US dollar strengthened amid a more optimistic global trade environment and diminishing expectations of immediate US interest rate reductions. The dollar's strength was further supported by US President Donald Trump's announcement of a preliminary trade agreement with the UK, marking the first such agreement since broad US tariffs were enacted last month. Trump also indicated the possibility of additional trade deals and mentioned that tariffs on China might be reduced, contingent on the outcome of forthcoming high-level trade discussions scheduled in Switzerland. Adding pressure to the yen, US Federal Reserve Chair Jerome Powell dismissed the notion of a preemptive rate cut, citing ongoing inflationary pressures and labor market concerns. Domestically, indicators showed that Japan's personal spending exceeded expectations in March, suggesting a positive outlook for consumer activity. Nonetheless, the economic outlook was tempered by a third consecutive monthly decrease in real wages.