FX.co ★ Japanese Yen Weakens as Risk Sentiment Improves

The Japanese yen fell to over 143 per dollar on Tuesday, stepping back from its recent gains as the return of risk appetite lessened the appeal of the yen as a safe haven. This shift in market sentiment was prompted by US President Donald Trump's decision to exclude essential technology products from the newly introduced reciprocal tariffs. Additionally, there were reports suggesting a possible halt on his proposed 25% tariffs on auto imports. Despite the improved economic outlook, markets remained wary following the US Commerce Department's initiation of a national security investigation into semiconductor and pharmaceutical imports—sectors closely linked with Asian supply chains. Investors are also closely observing upcoming trade talks between the US and Japan. Japan’s chief trade negotiator, Akazawa Ryosei, is scheduled to meet with US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer later this week. With Japan currently facing a reduced 10% tariff rate, expectations are high for Tokyo to negotiate more favorable terms during these discussions.