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

USD/JPY exchange rate today May 16, 2025

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

The US dollar index (DXY), which measures the greenback's strength against six other major currencies, fell 0.3% to trade around 100.70. The weakness followed a report from the US Bureau of Labor Statistics showing that factory inflation 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 remained steady, reinforcing 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 was news of Japanese trade representative Ryosei Akazawa's upcoming visit 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 there is a possibility of raising them to 0.75% by the end of 2025. In that context, the yen continued to increase in value for three consecutive days and maintained its superior strength against the USD.

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, despite this, the USD has not 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 are showing signs of improvement, helping to ease recession fears.

Statements from some 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.

Domestic Japanese Yen exchange rate today May 16, 2025

* The Japanese Yen exchange rate at the State Bank's buying and selling exchange center 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:

VIB Bank is buying Japanese Yen cash at the lowest price of 167.74 VND/JPY

VIB Bank is buying Japanese Yen transfers at the lowest price of 169.14 VND/JPY

SHB Bank is buying Japanese Yen cash at the highest price of 178.85 VND/JPY

Indovina Bank is buying Japanese Yen transfers at the highest price of 180.33 VND/JPY

VIB Bank is selling Japanese Yen cash at the lowest price of 175.80 VND/JPY

VIB Bank is selling Japanese Yen transfers at the lowest price of 174.80 VND/JPY

SHB Bank is selling Japanese Yen cash at the highest price of 187.85 VND/JPY

NCB Bank is selling Japanese Yen transfers at the highest price of 184.10 VND/JPY