Close Menu
World Economist – Global Markets, Finance & Economic Insights
  • Home
  • Economist Impact
    • Economist Intelligence
    • Finance & Economics
  • Business
  • Asia
  • China
  • Europe
  • Economy
  • USA
    • Middle East & Africa
    • Highlights
  • This week
  • World Economy
    • World News
What's Hot

Nvidia’s Jensen Huang plans Beijing trip ahead of new China AI chip launch

July 9, 2025

Explainer | Steel, cars, copper: the growing list of US import tariffs by category, not country

July 9, 2025

Bitcoin advances as investors look for rate cut signals in upcoming Fed minutes

July 9, 2025
Facebook X (Twitter) Instagram
Wednesday, July 9
Facebook X (Twitter) Instagram
World Economist – Global Markets, Finance & Economic Insights
  • Home
  • Economist Impact
    • Economist Intelligence
    • Finance & Economics
  • Business
  • Asia
  • China
  • Europe
  • Economy
  • USA
    • Middle East & Africa
    • Highlights
  • This week
  • World Economy
    • World News
World Economist – Global Markets, Finance & Economic Insights
Home » US dollar hits two-week high against yen as trade war reignites
World Economy

US dollar hits two-week high against yen as trade war reignites

adminBy adminJuly 9, 2025No Comments4 Mins Read
Share Facebook Twitter Pinterest Copy Link LinkedIn Tumblr Email VKontakte Telegram
Share
Facebook Twitter Pinterest Email Copy Link
Post Views: 8


The U.S. dollar climbed to its highest level against the Japanese yen in more than two weeks on Wednesday, following President Donald Trump’s pledge to issue further trade-related announcements after imposing 25% tariffs on Japan and other trading partners.

 

The dollar had already posted gains against major currencies on Tuesday, buoyed by Trump’s latest tariff threats, which are set to take effect on August 1. However, he later signaled openness to extending the deadline if countries submit proposals.

 

Trump wrote on social media that announcements concerning “at least seven countries” would be made on Wednesday regarding trade, without providing further details. He also threatened to impose a 50% tariff on copper imports and said he would soon implement long-delayed tariffs on semiconductors and pharmaceuticals.

 

Despite the recent strength, the U.S. dollar index – which tracks the greenback against a basket of six major currencies – remains more than 6% lower since Trump unveiled a wave of reciprocal tariffs on April 2 as part of what he called “Liberation Day.” Those tariffs initially triggered a broad market selloff before most were postponed to allow time for bilateral trade negotiations.

 

Ray Attrill, head of FX strategy at National Australia Bank, noted that “the market’s second take on the reciprocal tariff announcements was actually negative for the dollar, based on the belief that the damage could be just as severe – if not worse – for the U.S. as it is for other countries.”

 

He added that “markets are still hesitant to take decisive positions given the prevailing uncertainty.”

 

The dollar rose 0.1% to 146.75 yen after touching 147.19, marking a weekly gain of 1.5% so far – its largest against the yen since mid-December.

 

Japan, a major export-driven economy and key U.S. trading partner, remains far from reaching a deal. The yen has weakened significantly ahead of the tariff deadline as multiple rounds of negotiations have failed to yield progress. Japanese policymakers are increasingly focused on crucial upcoming elections.

 

Speculation that opposition parties might win seats in the upper house and push for greater fiscal stimulus has weighed on Japanese government bonds this week, driving a sharp rise in long-term yields.

 

U.S. Treasury Secretary Scott Bessent, one of Washington’s lead negotiators with Tokyo, is expected to attend Expo 2025 in Osaka later this month, which could open the door to further discussions.

 

IG analyst Tony Sycamore noted that “talks appear to be stalled over the issue of rice market protections in Japan, and it’s hard to imagine the Japanese backing down on this demand.”

 

“The dollar’s rise against the yen was also supported by a continued rally in U.S. bond yields for a fifth consecutive day, along with a sharp climb in Japanese yields due to fiscal concerns ahead of the July 20 election.”

 

The euro remained steady at $1.171, as markets awaited clarity on whether the European Union would receive a tariff notice from Washington. According to EU sources cited by Reuters, there is cautious optimism that the bloc could be granted exemptions from the standard 10% rate.

 

Investors are also looking ahead to the release of the Federal Reserve’s latest meeting minutes later today, which may offer clearer insights into the path of U.S. monetary policy.

 

Commerzbank analyst Antje Praefcke said the euro’s strength against the dollar was also tied to interest rate differentials. “Markets are currently pricing in nearly two rate cuts from the Fed by year-end, compared to just one from the European Central Bank,” she explained.

 

The dollar index was flat at 97.60, while the British pound edged higher to $1.36.

 

The New Zealand dollar rose 0.1% to $0.60, after the local central bank held its benchmark rate steady as expected and flagged near-term inflationary risks.

 

 



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Telegram Copy Link
admin
  • Website

Related Posts

World Economy

Bitcoin advances as investors look for rate cut signals in upcoming Fed minutes

July 9, 2025
World Economy

Gold extends losses to a week low before the Fed’s minutes

July 9, 2025
World Economy

Oil rises on Red Sea attacks, lower US production

July 9, 2025
World Economy

Oil rises on Red Sea attacks, lower US production

July 9, 2025
World Economy

Euro hovers at two-week trough on tariff exemptions

July 9, 2025
World Economy

Reserve Bank of New Zealand holds interest rates at three-year lows

July 9, 2025
Add A Comment
Leave A Reply Cancel Reply

Editors Picks

SBP to launch pilot for digital currency, says governor – Pakistan

July 9, 2025

President Zardari gives assent to Virtual Assets Act, 2025 – Technology

July 9, 2025

Notices issued to sugar mills for rehearing in cartelisation case – Markets

July 9, 2025

Arif Habib consortium: Fatima Fertilizer says submited EOI for PIACL – Business & Finance

July 9, 2025
Latest Posts

PSX hits all-time high as proposed ‘neutral-to-positive’ budget well-received by investors – Business

June 11, 2025

Sindh govt to allocate funds for EV taxis, scooters in provincial budget: minister – Pakistan

June 11, 2025

US, China reach deal to ease export curbs, keep tariff truce alive – World

June 11, 2025

Subscribe to News

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

Recent Posts

  • Nvidia’s Jensen Huang plans Beijing trip ahead of new China AI chip launch
  • Explainer | Steel, cars, copper: the growing list of US import tariffs by category, not country
  • Bitcoin advances as investors look for rate cut signals in upcoming Fed minutes
  • Big Tech rallies — plus, where we stand on Starbucks after China stake offers
  • China’s Chang’e-6 findings reveal asteroid strike may have altered moon’s far-side mantle

Recent Comments

No comments to show.

Welcome to World-Economist.com, your trusted source for in-depth analysis, expert insights, and the latest news on global finance and economics. Our mission is to provide readers with accurate, data-driven reports that shape the understanding of economic trends worldwide.

Latest Posts

Nvidia’s Jensen Huang plans Beijing trip ahead of new China AI chip launch

July 9, 2025

Explainer | Steel, cars, copper: the growing list of US import tariffs by category, not country

July 9, 2025

Bitcoin advances as investors look for rate cut signals in upcoming Fed minutes

July 9, 2025

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

Archives

  • July 2025
  • June 2025
  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • June 2024
  • October 2022
  • March 2022
  • July 2021
  • February 2021
  • January 2021
  • November 2019
  • April 2011
  • January 2011
  • December 2007
  • July 2007

Categories

  • AI & Tech
  • Asia
  • Banking
  • Business
  • Business
  • China
  • Climate
  • Computing
  • Economist Impact
  • Economist Intelligence
  • Economy
  • Editor's Choice
  • Europe
  • Europe
  • Featured
  • Featured Business
  • Featured Climate
  • Featured Health
  • Featured Science & Tech
  • Featured Travel
  • Finance & Economics
  • Health
  • Highlights
  • Markets
  • Middle East
  • Middle East & Africa
  • Middle East News
  • Most Viewed News
  • News Highlights
  • Other News
  • Politics
  • Russia
  • Science
  • Science & Tech
  • Social
  • Space Science
  • Sports
  • Sports Roundup
  • Tech
  • This week
  • Top Featured
  • Travel
  • Trending Posts
  • Ukraine Conflict
  • Uncategorized
  • US Politics
  • USA
  • World
  • World & Politics
  • World Economy
  • World News
© 2025 world-economist. Designed by world-economist.
  • Home
  • About Us
  • Advertise With Us
  • Contact Us
  • DMCA
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.