The Japanese yen held steady around 144.3 per dollar on Friday, near two-week highs, as the US dollar came under pressure amid growing expectations of deeper Federal Reserve rate cuts. The shift in sentiment followed reports that President Donald Trump may announce his pick for the next Fed Chair as early as September or October, potentially steering monetary policy in a more dovish direction.
Fed Chair Jerome Powell also reinforced that tone in recent congressional testimony, suggesting the central bank would have continued easing were it not for tariff-driven inflation risks. Meanwhile, the White House downplayed the urgency of upcoming tariff deadlines, further easing investor concerns over a prolonged trade conflict. In Japan, investors weighed data showing Tokyo’s core inflation slowed in June, though it remained well above the Bank of Japan’s 2% target—sustaining expectations of further rate hikes by the BOJ.
