Japan (BoJ) will continue raising interest rates, a key factor supporting the strengthening of the yen.

Meanwhile, investors expect the U.S. Federal Reserve (Fed) to maintain interest rates in its latest meeting, as the recently released PCE data showed a higher-than-expected increase, suggesting that inflation expectations will remain stable.

U.S. President Donald Trump announced on Wednesday that a 25% tariff on imported cars and trucks will take effect on April 3. This has raised concerns about its impact on Japan’s automotive industry, which accounts for approximately 3% of the country’s GDP.

Source: Fxstreet