Back to today’s briefing

Story perspectives

Japan's Yen Plummets Amid Trump's Tariff Shock

7/9/2025

37 5

Summary

Ishiba Addresses Yen Plunge

Japan's yen plummeted beyond 146 per dollar following President Trump's shocking 25% tariff announcement set for August 1. Prime Minister Ishiba reassured the public about ongoing US negotiations. While Japan's May current account surplus exceeded forecasts, sluggish wage growth dampens hopes for interest rate hikes by the Bank of Japan, leaving the economy in a precarious position.

Summary

Japan Surplus Soars

Japan's current account surplus soared to ¥3,436.4 billion in May 2025, a significant jump from ¥2,949.5 billion the previous year, surpassing forecasts. The goods account deficit shrank to ¥522.3 billion, and the services account proudly posted a surplus of ¥201.1 billion. Remarkably, the fiscal year 2024 closed with a historic surplus of ¥30.38 trillion.

1 of 2

Ishiba Addresses Yen Plunge

Japan's yen plummeted beyond 146 per dollar following President Trump's shocking 25% tariff announcement set for August 1. Prime Minister Ishiba reassured the public about ongoing US negotiations. While Japan's May current account surplus exceeded forecasts, sluggish wage growth dampens hopes for interest rate hikes by the Bank of Japan, leaving the economy in a precarious position.

1 / 2