FX.co ★ Japanese Yen Holds Decline on Trade Concerns

The Japanese yen hovered around 145 per dollar on Friday, following a nearly 1% drop the day before. This decline was largely driven by trade-related uncertainties, despite efforts by Tokyo to finalize an agreement with Washington ahead of a looming deadline next week. US President Donald Trump has indicated that he may start issuing formal notifications regarding trade tariffs imminently, which could mean the introduction of new tariff rates or the extension of current deadlines. Trump has previously threatened to impose tariffs of up to 35% on Japanese imports, highlighting Japan's restricted importation of American rice and automobiles as areas of concern. Further weakening the yen, the US dollar gained strength after a robust June jobs report surpassed expectations, alleviating fears of a recession and decreasing the likelihood of immediate interest rate cuts by the Federal Reserve. On the home front, Japan saw a better-than-expected resurgence in household spending in May, buoyed by government initiatives aimed at boosting consumer expenditure.