FX.co ★ Japanese Yen Strengthens for 7th Straight Session

The Japanese yen appreciated beyond 144 against the dollar on Wednesday, culminating in its seventh consecutive session of gains. This movement occurred as investors analyzed Japan’s latest trade figures and awaited outcomes from the G7 meeting. In April 2025, Tokyo's trade deficit significantly narrowed, contradicting market expectations for a surplus. Despite exports rising for the seventh month in a row, they did so at the slowest rate within the current growth cycle, amid apprehensions concerning potential US tariffs. In parallel, imports shrank for the second time this year, although the decline was not as pronounced as initially predicted. Japan’s chief trade negotiator, Ryosei Akazawa, reiterated the call for the removal of US tariffs in advance of the upcoming third-round trade discussions scheduled to commence this week. Additionally, attention is directed towards the G7 finance ministers’ summit, which began on Tuesday in Canada and continues until Thursday. On the periphery of the summit, Japanese Finance Minister Kato is expected to convene with US Treasury Secretary Bessent for dialogues likely to address recent movements in the currency markets.