The Japanese yen rose in Asian trading on Friday against a basket of major and minor currencies, resuming gains that had briefly paused yesterday against the US dollar, moving again toward a three-week high. The rise came after stronger-than-expected data on Japan’s economic growth — the world’s fourth-largest economy.

The data boosted expectations that the Bank of Japan could raise interest rates by 25 basis points in September, pending more upcoming releases on inflation, wages, and unemployment.

Price Action

USD/JPY fell about 0.4% to ¥147.20 from today’s opening at ¥147.75, after hitting a session high of ¥147.87.

On Thursday, the yen ended down 0.25% against the dollar, its first decline in three days, after earlier touching a three-week high at ¥146.21.

Aside from profit-taking, yen levels weakened alongside most other major and minor currencies after strong US Producer Price Index data.

Japanese Economy

Preliminary GDP figures showed Japan’s economy grew 0.3% in Q2 2025, above market forecasts of 0.1% growth. The economy posted flat growth (0.0%) in Q1.

The stronger-than-expected GDP reading came despite Japan’s struggle with an unstable trade environment in Q2, with a trade deal with the US only reached on July 23. Under this deal, Japan faces a blanket 15% tariff on all exports to the US, including cars.

Interest Rate Outlook

Following the GDP data, market pricing for a September BoJ rate hike of 25 basis points rose from 38% to 45%.

Investors await more data on inflation, unemployment, and wages to refine those expectations.

Minutes from the BoJ’s June policy meeting showed some board members would consider resuming rate hikes if trade tensions eased.

Ethereum prices fell alongside most other cryptocurrencies during Thursday’s trading, as risk appetite weakened following higher-than-expected US inflation data that reduced the likelihood of a Federal Reserve rate cut.

Government data showed that the US Producer Price Index rose 0.9% month-on-month in July, well above analysts’ expectations of 0.2%.

Initial jobless claims fell by 3,000 to 224,000 in the week ending August 9, compared to forecasts for a rise to 228,000. This was the first decline in three weeks, signaling ongoing labor market resilience.

Earlier this week, similar US data showed that annual consumer price inflation remained steady at 2.7% in July, below expectations for an increase to 2.8%.

Core inflation — which excludes volatile food and energy prices — rose to 3.1% in July, above forecasts for a 3% reading and compared with 2.9% in June.

According to the FedWatch tool, investors see a 99% probability of a 25 basis point Fed rate cut in September, compared with 94% yesterday and 57% a month ago. Analysts also estimate a 61% probability of another 25 basis point cut in October (up from 34% a month ago), and a 51% probability of a similar cut in December (up from 25% a month ago).

Separately, US Treasury Secretary Scott Bessent said that the administration of President Donald Trump has no plans to purchase cryptocurrencies or include them in official reserves at this time. He explained that the priority remains managing financial assets and seizures in a way that ensures economic stability and protects against market volatility.

Bessent added that dealing with cryptocurrencies requires clear regulatory policies and a solid legislative framework that balances support for digital sector innovation with safeguarding the financial system from potential risks.

Ethereum

As for trading, Ethereum dropped 4.5% to $4,518.2 on CoinMarketCap at 21:46 GMT.

Gold prices fell during Thursday’s trading amid a stronger US dollar against most major currencies and the release of US economic data that exceeded expectations.

Government data showed that the US Producer Price Index rose by 0.9% month-on-month in July, well above analysts’ expectations of 0.2%.

Initial jobless claims fell by 3,000 to 224,000 in the week ending August 9, compared to expectations for a rise to 228,000. This was the first drop in three weeks, signaling continued labor market resilience.

Earlier this week, similar US data showed that the annual pace of consumer price inflation remained steady at 2.7% in July, below forecasts for an increase to 2.8%.

Core inflation — which excludes volatile food and energy prices — rose to 3.1% in July, above expectations for a 3% reading and compared with 2.9% in June.

According to the FedWatch tool, investors see a 99% probability that the Federal Reserve will cut interest rates by 25 basis points in September, compared with 94% yesterday and 57% a month ago. Analysts also estimate a 61% probability of another 25 basis point cut in October, up from 34% a month ago, as well as a 51% probability of a similar cut in December, compared with 25% a month earlier.

Meanwhile, the US dollar index rose 0.4% to 98.2 points at 18:08 GMT, after reaching a high of 98.3 points and a low of 97.6 points.

In commodities trading, spot gold fell 0.8% to $3,381.1 an ounce at 18:09 GMT.

Equinix, one of the world’s largest data center operators, has announced a series of agreements to secure electricity from advanced nuclear energy. These include power purchase agreements and a preorder for mobile small nuclear reactors to power its data centers. The move comes amid growing concerns over global energy supplies, as electricity consumption surges due to technologies such as generative AI.

The company stated that these agreements are part of its long-term strategy to ensure stable and sustainable electricity supplies for its global operations. The deals are expected to provide more than 1 gigawatt of power for Equinix data centers — a significant step as the company prepares for future expansion.

This reflects a broader trend in the data center sector toward early-stage agreements with advanced nuclear power providers to meet massive electricity demand. Although small modular reactors and next-generation nuclear technologies are not yet widely available commercially in the US — a major hub for data centers — these preliminary deals highlight growing interest in nuclear technology as a potential solution to the energy crisis.

Under the agreements, Equinix plans to purchase 500 megawatts of power from California-based Oklo, a developer of next-generation nuclear fission reactors. It has also placed a preorder for 20 mobile small reactors with California’s Radiant Nuclear. In Europe, Equinix has signed potential power purchase deals with developers ULC-Energy and Stellaria.

Raouf Abdel, Executive Vice President for Global Operations at Equinix, told Reuters that these agreements are part of the company’s long-term energy planning and are not a short-term fix. The company has also signed agreements with Bloom Energy, a specialist in advanced fuel cells, to diversify its energy sources.

The push toward advanced nuclear energy follows the US Department of Energy’s launch of a pilot program selecting 11 projects to develop high-tech experimental reactors, with the aim of operating three of them in less than a year. This could accelerate the commercial availability of such technologies.

This strategic shift by Equinix and other tech companies reflects a proactive approach to meeting the surging energy demands of modern digital infrastructure, with a focus on innovative and sustainable power sources.