FX.co ★ Japanese Yen Rises on Dollar Weakness

The Japanese yen strengthened to approximately 146 per dollar on Thursday, building on gains from the previous day as the U.S. dollar diminished following a notable decline in Treasury yields. Additionally, global trade tensions added to market caution when U.S. President Donald Trump announced a 50% tariff on Brazilian imports, scheduled to commence on August 1, citing unfair trade practices. In parallel, trade discussions between the U.S. and Japan have reached a standstill, particularly concerning Japan's protection of its rice market. Trump recently introduced a 25% tariff on Japanese goods, also beginning on August 1, and has dismissed any possibility of extending the deadline. In response, Japanese Prime Minister Shigeru Ishiba expressed disappointment, describing the decision as “truly regrettable." Nonetheless, he reaffirmed Japan's dedication to continuing negotiations in hopes of reaching a mutually advantageous agreement. A domestic think tank forecasts that these new tariffs may shrink Japan’s GDP by 0.8% in 2025 and by a total of 1.9% through to 2029.