FX.co ★ Japanese Yen Rises as Trump Lowers Auto Tariffs

The yen appreciated to near 148 per dollar on Friday, recovering from losses seen in the previous session. This shift came after US President Donald Trump signed an executive order reducing tariffs on Japanese automobiles from 27.5% to 15%. This decision alleviated pressure on Japan's automotive sector, a key component of the country's export market, and provided a boost to the wider economy. Domestically, data indicated that real wages experienced an uptick in August, marking their first positive growth since December. This was supported by consistent base pay increases and substantial summer bonuses, which contributed to an optimistic outlook for the Bank of Japan's monetary policy. Governor Kazuo Ueda reiterated on Wednesday that rate hikes are still a possibility, contingent upon economic projections being met. Additionally, the yen benefited from a weaker US dollar, influenced by disappointing US labor statistics that increased expectations for a Federal Reserve rate cut this month.