SMBC fixes yen at 142.73 per dollar, 1.27 stronger

SMBC fixes yen at 142.73 per dollar, 1.27 stronger

On June 5, 2025, the Sumitomo Mitsui Banking Corporation (SMBC) fixed the Japanese yen at 142.73 per U.S. dollar, marking a significant strengthening of 1.27 yen compared to the previous day's rate. This move comes amidst a backdrop of global economic uncertainty and fluctuating currency values.

The strengthening of the yen can be attributed to several factors. Firstly, the recent decline in Eurozone inflation to below its 2% target [5] has bolstered investor confidence in the Japanese currency. Additionally, the Organization for Economic Co-operation and Development (OECD) has predicted that global economic growth will slow due to U.S. tariffs, which could lead to increased demand for safe-haven currencies like the yen [4].

Moreover, the U.S. hotels market, while steady, continues to face uncertainty due to tariffs and policy changes. The NYU International Hospitality Investment Forum highlighted that hoteliers are bracing for impact, but dealmakers are still transacting [3]. This uncertainty may contribute to investors seeking safer assets, such as the yen.

In the context of hotel acquisitions, Pandox AB and Eiendomsspar AS have proposed a €1.27 billion acquisition of Dalata Hotel Group, valuing the Irish firm at €6.05 per share [1]. This acquisition, if successful, could have implications for the global hotel industry, potentially affecting currency exchange rates and investor sentiment.

Meanwhile, the Philippine hotel operator Hotel101 is moving closer to a merger with JVSPAC, which could lead to the first Filipino-owned company listed and traded on the NASDAQ platform [2]. This development underscores the growing influence of emerging markets in the global hotel sector.

The strengthening of the yen against the U.S. dollar suggests that investors are favoring stability and safety in the current economic climate. However, the long-term impact of this move remains to be seen, as global economic growth is predicted to slow due to trade barriers and policy uncertainty [4].

References:
[1] https://www.costar.com/article/1301792652/5-things-to-know-for-june-3
[2] https://www.costar.com/article/1301792652/5-things-to-know-for-june-3
[3] https://www.costar.com/article/1301792652/5-things-to-know-for-june-3
[4] https://www.costar.com/article/1301792652/5-things-to-know-for-june-3
[5] https://www.costar.com/article/1301792652/5-things-to-know-for-june-3