Japanese Yen Eases on Dollar Strength
The Japanese yen depreciated past 148 per dollar on Friday, reversing gains from the previous session as escalating global trade tensions bolstered the dollar against major currencies.
US President Donald Trump reaffirmed plans to impose reciprocal tariffs on global trading partners, set to take effect on April 2. Despite the recent pullback, the yen remains near its strongest levels in over five months, underpinned by expectations that the Bank of Japan will continue raising interest rates this year.
Earlier this week, Japanese firms agreed to significant wage hikes for a third consecutive year, aiming to help workers cope with inflation and address labor shortages.
Higher wages are expected to boost consumer spending, fuel inflation, and provide the BOJ with more room for future rate hikes. While the central bank is widely expected to hold rates steady next week, policymakers are likely to proceed with further rate increases later this year as inflationary pressures persist.
Source: Trading Economics
