The yen strengthened toward 148 per dollar on Friday, recouping losses from the previous session after US President Donald Trump signed an executive order cutting tariffs on Japanese cars to 15% from 27.5%.
The move eased pressure on Japan’s auto sector, its leading export industry, and offered support to the broader economy.
On the domestic front, data showed real wages turned positive in August for the first time since December, driven by steady base pay gains and sizable summer bonuses.
That underpinned a hawkish outlook for Bank of Japan policy, with Governor Kazuo Ueda reaffirming Wednesday that rate hikes remain on the table if economic projections hold.
Externally, the yen also drew strength from a softer dollar, as weak US labor data bolstered expectations of a Federal Reserve cut this month.
AloJapan.com