Japanese Yen exchange rate today 5/16/2025: Japanese Yen increased slightly after PPI was lower than forecast

USD/JPY exchange rate today 5/16/2025

The USD/JPY exchange rate decreased slightly by 0.6%, approaching 145.81 USD/JPY. The Japanese Yen strengthened mainly due to the selling pressure of the US dollar after the US announced economic data that was not as expected, especially the producer price index (PPI) and retail sales in April.

The U.S. Dollar Index (DXY), which measures the greenback's strength against six major currencies, fell 0.3% to trade around 100.70. The weakness came after a report from the U.S. Bureau of Labor Statistics showed that factory inflation had cooled.

Meanwhile, the USD is still having difficulty attracting cash flows, although market sentiment about the risk of economic recession has eased and expectations of the Fed cutting interest rates are no longer too strong.

Inflationary pressures in Japan were reinforced by producer price index data released on Wednesday, which showed domestic prices rising steadily, further bolstering the case for the BoJ to continue normalizing monetary policy.

BoJ Deputy Governor Shinichi Uchida also affirmed that the central bank will raise interest rates if the economy and inflation develop as forecast.

Another factor supporting the yen is news of the upcoming visit of Japanese trade representative Ryosei Akazawa to Washington for a new round of trade talks with the US.

Japan is said to be drafting a package of proposals aimed at gaining concessions from the US, increasing the possibility of a bilateral trade deal.

According to a Reuters survey, most economists predict the BoJ will keep interest rates at 0.5% until September, but is likely to raise them to 0.75% by the end of 2025. Against this backdrop, the yen has continued to rise for three consecutive days, maintaining its superior strength against the US dollar.

Meanwhile, the newly released data on the US consumer price index (CPI) in April was lower than expected, which reinforced the possibility that the Fed would have to cut interest rates. However, the USD has not yet been able to recover clearly.

Traders have now reduced expectations for a sharp rate cut from the Fed, especially as trade relations between the US and China show signs of improvement, helping to ease recession fears.

Statements from several senior officials from the US Federal Reserve (Fed) also showed caution. Chicago Fed President Austan Goolsbee said that current inflation data is still lagging and the Fed needs more time to observe.

Fed Vice Chairman Philip Jefferson said inflation is approaching the 2% target but there are still many uncertainties, especially from tariff policy.

San Francisco Fed Governor Mary Daly said the Fed is well positioned to adjust policy if any changes occur in the economy, with the labor market and growth remaining stable.

Japanese Yen exchange rate today 5/16/2025: Japanese Yen increased slightly after PPI was lower than forecast

Domestic Japanese Yen exchange rate today May 16, 2025

* The Japanese Yen exchange rate at the State Bank's exchange office has increased slightly, currently at: 162 VND - 179 VND.

In the "black market", the black market Japanese Yen exchange rate as of 4:30 a.m. on May 16, 2025 also increased slightly, trading around 178.45 VND/JPY.

The buying and selling rates of Japanese Yen at commercial banks are as follows: