FX.co ★ Japanese Yen Rallies Amid Trade War Concerns

The Japanese yen climbed to over 148 per dollar on Thursday, reaching a three-week peak as investors moved towards safe-haven assets. This shift followed an announcement by US President Donald Trump regarding extensive reciprocal tariffs, intensifying concerns about a potentially disruptive global trade war. Trump unveiled an additional 34% tariff specifically targeting China, lifting total levies on the nation to 54%. Other major economies affected by considerable tariffs include the European Union at 20%, Japan at 24%, and India at 26%, along with a baseline tariff of 10% on imports from all nations. Earlier this week, Kazuo Ueda, Governor of the Bank of Japan, cautioned that these new US tariffs could notably affect global trade and economic growth. Although the BOJ is anticipated to raise interest rates further later this year, uncertainties regarding global trade and the domestic economic landscape continue to influence the economic outlook.