FX.co ★ Safe-Haven Yen Remains Volatile Amid Global Trade Fears

The Japanese yen experienced fluctuations on Monday, initially strengthening to approximately 145 per dollar before easing back toward 147. This volatility is attributed to market disturbances sparked by the intensifying global trade war. The previous week's introduction of unexpectedly high reciprocal tariffs by President Trump drew countermeasures from major economies, fanning concerns of a global recession. As a result, there was a significant selloff in equities and commodities, prompting investors to seek refuge in safe-haven assets such as the yen, the Swiss franc, and government bonds. On the domestic front, Japan reported accelerated nominal wage growth in February, signaling a positive development for an economy grappling with rising global trade challenges. Meanwhile, the Bank of Japan is anticipated to continue its policy of raising interest rates this year. However, uncertainties surrounding global trade tensions and domestic conditions pose challenges to the economic outlook.