- The Japanese Yen (JPY) falls for a second day
- Trump announced plans for 25% tariffs on Japan
- The US Dollar (USD) rises against its major peers
- Trump appears open for further negotiation
The US dollar Japanese yen (USD/JPY) exchange rate rose for a second straight day on Tuesday The pair rose 0.96% in the previous session, settling on Monday at 145.88. At 18:30 UTC, USD/JPY is 0.5% higher at 146.62 and in a range of 145.83 to 146.98.
The has fallen sharply after President Trump reiterated his plans to impose 25% tariffs on goods imported from Japan and South Korea.
On Monday, Trump began informing trade partners that sharply higher US tariffs will take effect on August 1st. Trump announced that letters had been sent to 14 nations informing them of the new tariffs with the US, with a later deadline.
Trump said the US would impose tariffs of 25% on goods from Tunisia, Malaysia, and Kazakhstan, with levies of 30% on South Africa, climbing to 32% on Indonesia, and 35% on Serbia and Bangladesh. Meanwhile, Thailand and Cambodia would see import levies of 36%.
Japanese Prime Minister Ishiba said some progress had been made on avoiding high tariffs. Negotiations are ongoing, and tariffs could be revised.
The US dollar is rising modestly against its major peers. The US dollar index, which measures the USD against a basket of peers, is rising by 0.04% to 97.50, marking a second day of gains.
You are still a rose, slightly, on Tuesday in Shanghai, reaching a 1.5-week peak due to stronger treasury note yields.
The US dollar is rising after President Trump said he’s still open to additional negotiations after sending letters informing countries of their trade-related higher tariffs. He did say that the August 1st deadline for higher tariff rates was not 100% firm. His comments and stunts appear to show flexibility and a willingness to negotiate, which is helping to support the US dollar.
The U.S. economic calendar was quiet on Tuesday. Attention will now turn to the FOMC meeting minutes, due to be released tomorrow, which could provide further insight into the Fed’s future path for rate cuts.
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