FX.co ★ Japanese Yen Holds Near 6-Month High

On Monday, the Japanese yen showed a marked increase, nearing 142.5 per dollar, its highest in over six months, as rising trade-related uncertainties heightened the appeal of safe-haven assets. Market dynamics were shaped by US President Donald Trump's decision to exempt smartphones, computers, and other tech products from the newly implemented "reciprocal" tariffs. Nevertheless, Commerce Secretary Howard Lutnick pointed out that these imports could be subjected to new levies within the upcoming two months. Trump further clarified that these items continue to be affected by the existing 20% Fentanyl Tariffs. Simultaneously, market participants are keenly anticipating forthcoming trade discussions between the US and Japan. Akazawa Ryosei, Japan’s chief trade negotiator, is slated to meet with US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer this week. Japan, currently benefiting from a reduced 10% tariff rate, is striving for more advantageous terms in the ongoing negotiations.