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Japanese Yen Holds Firm as Dollar Weakens
Monday, 26 May 2025 11:35 WIB | USD/JPY |JAPAN

The Japanese yen steadied around 142.5 per dollar on Monday, maintaining gains after a 2% surge last week, supported by a weaker US dollar as President Donald Trump's unpredictable trade policies rattled investor confidence in US assets.

Trump most recently threatened to impose a 50% tariff on the European Union, only to delay the measure days later. He also warned of a potential 25% levy on iPhones sold in the US that are not manufactured domestically, adding to broader trade policy uncertainty.

At home, investors continue to gauge the Bank of Japan's policy outlook, with expectations mounting that it will raise interest rates further in response to persistent inflation.

Data released last week showed Japan's core inflation rate unexpectedly accelerated to 3.5% the highest level in over two years bolstering the case for continued policy tightening.

Source: Fxstreet

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