FX.co ★ Japanese Yen Edges Higher as Dollar Retreats

The Japanese yen appreciated, closing in on 147 per dollar by Wednesday, marking its second straight day of gains as the dollar softened due to US inflation figures falling short of projections. Investors are also assessing global trade conditions following the US and China's agreement to temporarily reduce tariffs for 90 days, though skepticism lingers regarding future trade policies post-agreement. On a bilateral level, Japanese Prime Minister Shigeru Ishiba emphasized that Japan would not agree to an initial trade deal with the US absent clauses on automotive trade and urged Washington to eliminate the 25% tariff on Japanese automobiles. Domestically, newly released data indicated that Japan's producer prices increased by 4% annually in April, a slight decline from March's 4.2%, marking the slowest growth since December. Concurrently, the Bank of Japan maintained its cautious policy approach, citing sustained uncertainty regarding both economic activities and inflationary trends.