The yen moved past the key 140 per dollar mark on Tuesday as investors looked for safer options amid growing worries about U.S. assets.
The yen rose by as much as 0.7% to 139.90 per dollar. This occurred after uncertainty grew over the Federal Reserve’s independence, rising concerns about tariffs, and news of a planned meeting between Japan’s and America’s finance chiefs.
At 139.90, the yen was at its strongest point since last September, according to a Bloomberg report. On Tuesday, it outperformed all other Group-of-10 currencies.
Demand for the yen has soared this month, thanks in part to President Donald Trump’s trade war with other nations. The yen gained nearly 7% against the dollar in April alone as investors sought refuge from the fallout.
Unease also rose when Trump signaled he might remove Fed Chair Jerome Powell. The president is preparing to blame the Fed if it does not cut rates soon to offset the trade war’s economic impact.
Analysts at Mizuho Securities noted that falling U.S. stock prices and upcoming talks could push the yen toward its 2024 high of 139.58. They said that if investors test that level, it could spur even more buying.
“If the yen clearly exceeds the 140 level or the mid‑139 level that it hit in September last year, it’ll become easier for technical factors to trigger yen buying and dollar selling, accelerating the yen’s appreciation,” said Hideki Shibata, senior fixed‑income and foreign‑exchange strategist at Tokai Tokyo Intelligence Laboratory Co.
Traders’ Yen bets hit record high before Japan-US meeting
Data from the Commodity Futures Trading Commission showed speculative traders held the most bullish positions on the yen ever recorded as of April 15.
All eyes are now on the meeting reportedly set for this week between Japan’s Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent. Trump has publicly accused Japan of keeping its currency weak to help its exports, and Kato has said he will press for in‑depth talks on currency moves.
Bloomberg strategists pointed out that while USD/JPY briefly dipped below 140, it has yet to fall much further. They added that a broader “sell America” mood could keep pushing the yen higher in the weeks ahead.
The Bank of Japan officials see little reason to alter their plan for a gradual rise in rates despite U.S. tariff uncertainty. Still, overnight index swaps now price in a 59% chance of a BOJ rate hike by year’s end, down from near certainty before recent U.S. tariff announcements.
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