Japanese Yen Slips as US Tariffs Loom

The Japanese yen depreciated again past 150 per dollar on Wednesday, paring gains from the previous session as investors braced for the implementation of US reciprocal tariffs, which could impact key Japanese exports.

A rebound in risk assets, including equities and commodities, further dampened demand for the safe-haven yen.

Domestically, minutes from the Bank of Japan’s January meeting revealed that policymakers remain open to additional interest rate hikes, contingent on wage growth and inflation trends.

One BOJ member suggested that the policy rate could reach 1% in the second half of fiscal 2025.

Last week, the BOJ kept its policy rate steady at 0.5%, with officials maintaining a cautious stance as they monitor global economic risks, particularly the potential fallout from higher US tariffs.