Japanese Yen Strengthens as Dollar Weakens
The Japanese yen strengthened past 145 per dollar on Monday, marking a fifth straight session of gains, as the U.S. dollar weakened following a Moody's credit downgrade. On Friday, the agency downgraded the U.S. credit rating to Aa1 from Aaa, citing a worsening fiscal outlook and a "lack of effective policy action" to address a widening deficit.
At home, the latest data showed that Japan's economy contracted in the first quarter of 2025, with GDP falling worse than market expectations and marking its first economic contraction in a year. Investors now turn their attention to upcoming Japanese trade data amid the looming impact of upcoming U.S. tariffs. In the latest development, Prime Minister Shigeru Ishiba reiterated that Japan will not accept any initial deal that excludes provisions on cars, urging the U.S. to lift 25% tariffs on Japanese cars.
Source: Trading Economics
