FX.co ★ Yen Strengthens as Dollar Slips on Trade Concerns

The Japanese yen advanced beyond 143 per dollar on Wednesday, rebounding from losses seen in the previous session due to the ongoing weakness of the U.S. dollar. This decline in the dollar arises amid escalating worries about the potential economic consequences of new U.S. tariffs. Recently, President Donald Trump initiated an investigation into possible tariffs on all critical mineral imports crucial to the U.S., a significant portion of which are imported from China. This development has heightened investor concerns, putting additional pressure on the dollar. At the same time, focus is shifting towards the upcoming trade negotiations between Japan and the United States, with Japan advocating for a complete removal of tariffs imposed by Trump's administration. Domestically, traders are processing data indicating that Japanese manufacturing sentiment reached an eight-month high in April. Nevertheless, the economic outlook remains cautious due to ongoing apprehensions regarding U.S. trade policies.