FX.co ★ Japanese Yen Rises on Safe-Haven Flows

On Monday, the Japanese yen appreciated to approximately 143.5 against the dollar, marking its third consecutive session of gains as global trade tensions spurred demand for safe-haven assets. This movement was in response to comments made by U.S. President Donald Trump late on Friday, indicating his intention to double tariffs on steel and aluminum imports to 50%, effective June 4. This announcement posed challenges for Japanese steelmakers, with companies like JFE Holdings and Kobe Steel potentially facing significant obstacles. In contrast, Nippon Steel experienced minimal impact, bolstered by Trump’s favorable remarks regarding its upcoming merger with US Steel. Additionally, tensions heightened between Washington and Beijing, as China dismissed Trump’s allegations of violating a recent trade agreement brokered in Geneva. Domestically, Japan reported unexpectedly robust capital expenditure growth in the first quarter, bolstered by both the manufacturing and non-manufacturing sectors, signaling sustained investment momentum despite global uncertainties.