FX.co ★ Japanese Yen Strengthens Amid Escalating Trade Tensions

On Monday, the Japanese yen experienced an appreciation, moving toward 147 per dollar as it regained some of the ground lost in the previous week. This reaction from investors comes amid heightened global trade tensions. The change follows President Donald Trump's declaration of a new 30% tariff on imports from both the European Union and Mexico, scheduled to be implemented on August 1st. In light of this, leaders from the EU and Mexico have expressed their determination to continue negotiations with the Trump administration throughout the month, aiming to agree on a reduced tariff rate. Additionally, the EU is reportedly broadening discussions with other affected countries, such as Canada and Japan, potentially considering joint responses. Within Japan, the domestic economic indicator of core machinery orders showed a 0.6% decline month-over-month, reaching ¥913.5 billion in May. Despite remaining in the negative, this result signifies a marked improvement from April's steep 9.1% decrease and exceeded the anticipated 1.5% reduction.