Japanese Yen Strengthens to a One-Month High Over Renewed Tariff Threats

Japanese yen touched a one-month high against the US dollar on Trump's announcement of 10% tariffs on $300 billion worth of Chinese imports.

USD/JPY

Trump’s unexpected decision to impose 10% tariffs on Chinese goods worth $300 billion with effect from September 1 has caused a rally in safe haven assets. On Thursday, while GOLD rose nearly 2% higher, the Japanese yen also gained strength and touched a one-month high against the US dollar.

At the time of writing, USD/JPY has steadied itself to trade at around 107. The dollar had lost 1.3% of its value against the yen on Thursday over reignited trade tensions driving uncertainty in the global financial markets.

In addition to the increased appetite for safe haven assets, expect volatility to increase in stock markets and bond yields around the world. This increased volatility could drive further weakness in the US dollar and help boost the Japanese yen’s attractiveness as an instrument to invest in.

For now, markets appear to be in a wait-and-see mode to find out how China is going to react to this latest round of tariffs.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers