Overview

• On July 8, the yen fell by 84 sen to around ¥146.03–¥146.05 per dollar and hit about ¥171.74–¥171.78 against the euro, marking its weakest levels since July 2024.
• The Trump administration announced new tariffs on Japan and other trading partners, heightening uncertainty in global markets.
• Market participants priced in postponed Bank of Japan interest rate hikes, fueling dollar-buying against the yen.
• Forex brokers reported subdued afternoon trading as investors awaited fresh catalysts in the absence of new stimuli.
• The yen’s recent swings reflect ongoing U.S.-Japan trade tensions coupled with the BOJ’s commitment to ultra-loose monetary policy.