The yen exchange rate rose to 141 yen

On the New York foreign exchange market on April 16, the yen-dollar exchange rate rose to around 141 yen per dollar, setting a new high since the beginning of the year. This is the highest yen appreciation and dollar depreciation since September 2024. The market is increasingly vigilant about the issue of yen depreciation that will also be involved in the Japan-US tariff negotiations.

Japan’s Minister of Economic and Fiscal Revitalization Ryomasa Akasawa, who is responsible for tariff negotiations with the United States, held talks with U.S. Treasury Secretary Benson on the afternoon of April 16, Eastern Time. Benson once said about the recent appreciation of the yen: “This is a natural trend.” Considering that U.S. President Trump has previously criticized Japan for inducing currency depreciation, the market remains vigilant about the pressure of yen appreciation.

Aozora Bank Chief Market Strategist Akira Moroga pointed out that “market expectations for correcting yen depreciation are increasing.” He said: “Based on the content of the talks, the possibility of a sharp appreciation of the yen to 120-130 yen cannot be ruled out.”

The market is still strongly concerned that U.S. President Trump’s “reciprocal tariffs” will suppress the U.S. economy. In his speech on April 16, Federal Reserve (FRB) Chairman Powell pointed out that “tariffs are far beyond expectations.” On the other hand, he also said that the effect of high tariffs on prices “may be more lasting” and emphasized that the impact will be closely monitored.

Daisuke Uno, chief strategist at Sumitomo Mitsui Bank, said: “The ‘triple drop’ situation of stocks, currencies and bonds being sold off at the same time shows that the market has strong distrust of the United States. The trend of selling the US dollar may continue in the short term.”