FX.co ★ Yen Strengthens Amid Trade Uncertainty

The Japanese yen appreciated beyond 143 to the dollar on Thursday, halting a two-day decline as investors sought refuge in safe-haven assets amid escalating trade uncertainty. This shift in market sentiment was triggered by reports suggesting the Trump administration might reduce tariffs on Chinese goods, contingent on the success of potential negotiations. In response, China expressed willingness to engage in dialogue, provided the U.S. ceases further threats. Nonetheless, U.S. Treasury Secretary Scott Bessent moderated expectations, clarifying that no formal negotiations have commenced and no independent tariff reductions have been suggested. Adding to the restrained outlook, it was reported that the U.S. apprised Japan's trade delegation that Tokyo would not be granted exceptions under the current U.S. tariff policy, despite Japan’s appeals for reconsideration.