FX.co ★ Japanese Yen Languishes at 4-Month Low

The Japanese yen remained near 150.7 against the dollar on Friday, marking a four-month low as the dollar continued to strengthen in response to President Donald Trump's recent tariff announcements. Trump upheld a global tariff of 10% and implemented significant reciprocal tariffs of up to 41% on nations lacking completed trade agreements, along with a 40% tariff on transshipped goods. These measures have heightened global trade tensions and increased demand for the dollar. Concurrently, the Bank of Japan decided on Thursday to maintain its current interest rates but adjusted its inflation forecast for the current fiscal year upwards. Policymakers expressed caution, anticipating a temporary decline in core inflation and citing increased uncertainty due to global trade risks. The yen's value is further pressured by concerns over the effects of declining external demand and tighter U.S. policy.