FX.co ★ Japanese Yen Falls on US-China Trade Hopes

The Japanese yen fell to above 146 per dollar on Monday, hitting a new one-month low. This decline came amid positive developments in the trade discussions between the United States and China, which reduced the appeal of safe-haven currencies. Over the weekend, representatives from both nations signaled progress; US officials promoted a deal designed to lessen the trade deficit, while Chinese officials called the outcome an "important consensus." Simultaneously, US Commerce Secretary Howard Lutnick revealed that the 10% baseline tariffs on imports from other countries might "remain in place for the foreseeable future." Investors remained attentive to ongoing US-Japan trade discussions, with Tokyo striving for an agreement by June. On the domestic front, Japan reported a current account surplus of JPY 3.45 trillion in March, down from a record JPY 4.06 trillion surplus in February.