USDJPY fell after President Trump delayed retaliatory tariffs.
USDJPY remained steady after losing ground in the previous session, trading around 152.60 during Asian hours on Friday. The partnership encountered difficulties following US President Donald Trump’s decision to postpone the imposition of reciprocal tariffs.
US dollar loses as US yields fall throughout the curve.
The US Dollar (USD) falls as US rates fall throughout the curve, despite persistent concerns about a global trade war. Investors are now awaiting the publication of US retail sales data later in the day.
The US dollar index (DXY) measures The US dollar’s value against six major currencies falls for the fourth consecutive session. The DXY is trading around 107.00, with 2-year and 10-year yields on US Treasury notes at 4.31% and 4.53%, respectively, as of this writing.
Core PPI inflation in the United States (US) increased to 3.6% year on year in January, beating the forecast 3.3% but slightly below the corrected 3.7% (formerly reported as 3.5%). This has bolstered expectations that the Federal Reserve (Fed) will postpone interest rate decreases until the second part of the year. Furthermore, persistently high inflation could support the Fed’s decision to retain interest rates at 4.25%-4.50% for a lengthy term.
Japan’s Economy Minister, Ryosei Akazawa, stated that authorities will take appropriate action over US reciprocal tariffs.
On Friday, Japan’s Economy Minister Ryosei Akazawa stated that the authorities will respond accordingly Tariffs in the United States are reciprocal. Akazawa went on to say that the weak Japanese yen (JPY) has a wide range of effects on the Japanese real economy.
The Japanese Yen (JPY) strengthened following the release of stronger-than-expected Producer Price Index (PPI) data from Japan on Thursday, strengthening expectations of more rate hikes by the Bank of Japan. The numbers show that inflationary pressures in Japan are increasing, which is backed by recent wage growth estimates and strengthens the case for more BoJ rate hikes.
