Japanese Yen Falls To Multi-Month Lows Amid Trade, Tariff Concerns

The Japanese yen has been weakening significantly against major currencies, reaching one-year lows against the euro and the Swiss franc, and multi-month lows against the U.S. dollar and other currencies amid economic concerns. Disappointing trade data showing a narrowed trade surplus and consecutive monthly export declines, influenced by ongoing U.S. tariffs, have heightened fears of a potential technical recession in Japan. The yen's decline is also influenced by uncertainty surrounding Japan's upcoming Upper House election and stalled U.S.-Japan trade negotiations, with no deal reached before the expiration of a temporary tariff pause. Japanese officials are actively engaging with U.S. counterparts to address tariffs, while investors speculate on possible fiscal stimulus measures such as increased government spending and consumption tax cuts to boost economic growth. Market attention remains focused on upcoming Japanese trade and inflation data, which could provide further insight into the domestic economic impact of tariff pressures. Overall, the yen's downward trend reflects both external trade tensions and domestic political uncertainties.