- The Japanese Yen (JPY) rose, recovering yesterday’s losses
- Trump re-ignites trade concerns
- The US Dollar (USD) fell against its major peers
- US jobless claims rose & PPI eased
The US dollar against the Japanese yen (USD/JPY) exchange rate is falling for a second straight. The pair fell 0.47% in the previous session, settling on at 144.18. At 20:30 UTC, USD/JPY is -0.44% lower at 143.54 and in a range of 143.54 to 144.35.
The Japanese yen gained ground on Thursday, boosted by safe haven flows amid a resurgence of trade tariff uncertainty. Any optimism following the US and China’s trade framework agreement was quickly overshadowed by Trump’s announcement that he will be setting unilateral tariff rates within weeks. These take-it-or-leave-it tariff letters will be sent to a swathe of trading partners, reviving trade uncertainty and worries.
The US Dollar is falling across the board. The US Dollar Index, which measures the greenback against a basket of major currencies, is -0.70% lower at 97.94 at the time of writing, falling for a second straight day.
The US dollar is falling after weaker-than-expected U.S. data and amid rising uncertainty surrounding Trump’s trade tariffs.
US jobless claims rose to 248,000, up from 247,000, marking the highest number of initial jobless claims since October. Meanwhile, the four-week moving average of initial claims now has a clear upward bias, rising to its highest level since August 2023, suggesting that layoffs are on the rise.
Meanwhile, on the other side of the Federal Reserve’s dual mandate factory gate, inflation as measured by PPI rose just 0.1% month over month in May, down from 0.2% in April. This was below the 0.2% increase forecast.
This weaker-than-expected data followed cooler-than-expected consumer inflation data yesterday, giving the Federal Reserve room to be patient with rates. As long as inflation isn’t increasing, the Fed can wait for more information on how tariffs and trade negotiations may impact the US economy.