The depreciation of the Japanese yen has further expanded. The Governor of the Bank of Japan stated that tariffs have increased uncertainty in economic prospects.

As Bank of Japan Governor Haruhiko Kuroda mentioned the uncertainty brought by tariffs in his speech, the depreciation of the yen against the dollar further widened. Prior to this, the Bank of Japan kept interest rates unchanged and postponed the expected time to achieve its inflation target, causing the yen to weaken. The yen fell by as much as 1.2% against the dollar to 144.74, with the Bank of Japan keeping the benchmark interest rate at 0.5% unchanged. The Bank of Japan currently expects to achieve inflation tendencies consistent with its 2% target in the latter half of the outlook period, which has been extended by one year to include the 2027 fiscal year. Kuroda said that the possibility of the Bank of Japan achieving this outlook is not as high as before, and the uncertainty is very high due to the tariff measures. In a previous survey, all 54 economists expected the Bank of Japan to stay put as President Trump's policies trigger market volatility. Derivatives traders also delayed their expectations of a rate hike, with overnight index swaps currently showing a 39% chance of a rate hike before the end of the year, compared to a high level of certainty in early April.