FX.co ★ Japanese Yen Weakens as Haven Demand Eases

The Japanese yen declined towards 146 per dollar on Thursday, reaching a two-week low as the reduction in tariff risks decreased the appeal of safe-haven assets. This decline occurred after a US federal court ruled that President Donald Trump had exceeded his authority by implementing reciprocal tariffs. The US Court of International Trade deemed the tariffs unlawful and mandated their nullification and permanent blocking, delivering a substantial setback to the president's economic agenda. The White House is anticipated to challenge this ruling. Domestically, Bank of Japan Governor Kazuo Ueda voiced concerns about increasing super-long-term bond yields, emphasizing the necessity to observe potential impacts on shorter-term debt markets. His comments highlighted growing apprehensions regarding financial stability risks amid evolving interest rate conditions. Ueda has consistently affirmed that the central bank stands prepared to modify monetary policy as required to achieve its inflation objectives.