The US Dollar strengthened for five consecutive days towards the end of the month, driving down the yen to 109 to the Dollar.
Japan’s March trade balance continued in surplus but there was a dip in exports to the US and the EU. The weak forecast seemed to be related to increased uncertainty following fears of a trade war between the US and China.
The weakening Yen was also due in part to domestic politics. The approval rating of the Japanese cabinet slumped as opposition continued to challenge the ruling party. There have been calls for the Prime Minister to resign.
Several analysts have commented that it seemed odd the Yen should weaken against the US Dollar on rumours that the Prime Minister may resign since he supported the central bank’s weak Yen policy. If he resigns there is no certainty that this support for the Bank of Japan would continue.