FX.co ★ Japanese Yen Rallies on Safe-Haven Demand

On Monday, the Japanese yen appreciated beyond 149 against the dollar, recording its second day of gains as investor unease over imminent US tariffs heightened the appeal of safe-haven assets. President Donald Trump, over the weekend, reiterated his intention to enact reciprocal tariffs on all countries, reportedly urging his advisors toward a more assertive trade policy approach. The yen's notable movements prompted Finance Minister Katsunobu Kato to caution against substantial currency fluctuations, affirming his commitment to maintaining ongoing communication with his US counterpart regarding foreign exchange issues. Additionally, the Bank of Japan's hawkish signals lent support to the yen. The latest opinions summary from the central bank suggested that, if economic and inflation forecasts are met, interest rate hikes will persist. Policymakers highlighted that wage increases and elevated consumer spending are sustaining inflation, thereby strengthening the rationale for further progression towards monetary policy normalization.