FX.co ★ Japanese Yen Firms Amid Trade Uncertainty

On Thursday, the Japanese yen appreciated to approximately 143.6 per dollar, regaining some ground lost in the prior session due to escalating global trade uncertainties that bolstered the appeal of safe-haven assets. The market reacted to former President Donald Trump’s announcement on Truth Social about an upcoming news conference, where he hinted at revealing an agreement with a major country, reportedly the United Kingdom. Simultaneously, Trump declared that he will not ease tariffs on China as a prerequisite for initiating trade discussions, as US-China negotiations are set to take place in Switzerland shortly. Additionally, market participants are closely observing the progress of US-Japan trade discussions, with Japan aiming to conclude a bilateral agreement by June. On the domestic front, the minutes from the latest Bank of Japan meeting indicated that policymakers are willing to continue increasing interest rates if the projections for economic growth and inflation are realized. However, some members expressed concerns about increasing external threats, notably from US trade policies.