The Japanese yen tumbled in Asian trade on Thursday against a basket of major rivals, expanding losses for the fourth straight session against the dollar and plumbing a two-week trough as markets celebrate a US trade court’s rule to suspend Trump’s tariffs on most countries.
Safe havens were pressured further by Nvidia’s forecast-beating earnings results for the first quarter of the year despite export restrictions to China.
The Price
The USD/JPY price rose over 1% to 146.29, the highest since May 15, with a session-low at 144.74.
The yen lost 0.35% on Wednesday against the dollar as US recession concerns receded.
Trump’s Tariffs Suspension
The US Court of International Trade in Manhattan deemed US reciprocal tariffs on imports of other currencies as illegal.
The order, judged by a three-member panel, focuses on the exclusive rights of Congress to decide on tariff policies, and not the president.
Trump’s use of emergency economic powers to impose the aggressive tariffs was deemed illegal by the court.
It’s a massive blow to Trump’s ability to use tariffs to threaten world governments with tariffs to force them to acquiesce to hit demands.
It led to a massive dollar surge against main rivals, including above 148 yen, with global stocks rallying as well.
Nvidia’s Results
Nvidia reported forecast-beating results in the first quarter of the 2025 financial year, boosted by strong demand on AI tech, especially in the data centers sector.
Nvidia marked record earnings of $44.06 billion, passing estimates of $43.31 billion, in a 12% surge from the previous quarter, and a 69% yearly surge.
The company reported profits of 96 cents per share, passing estimates of 93 cents, with net income rising to $18.8 billion, up from $14.9 billion in the same period last year.
The company nonetheless expects to lose $8 billion of sales due to export restrictions to China.
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