FX.co ★ Japanese Yen Strengthens Despite Weak GDP Data

The Japanese yen strengthened to approximately 145 per dollar on Friday, continuing its upward trend for the fourth straight session even amid disappointing economic growth data. Japan experienced a 0.2% contraction in its economy on a quarter-on-quarter basis in the first quarter, marking the first decline in a year and exceeding the anticipated 0.1% contraction. Earlier this week, the Bank of Japan indicated that the economy might face moderation owing to the influence of U.S. trade policies. Nevertheless, the central bank sustained its outlook that increasing wages and prices would forge a path towards policy normalization, thereby supporting the yen. Meanwhile, investors remain attentive to the ongoing U.S.-Japan trade discussions, with Japan keen to finalize an agreement by June. Prime Minister Shigeru Ishiba emphasized Japan's demand that any trade deal must address the auto sector, urging the U.S. to lift its 25% tariff on Japanese automobiles.