Japanese Yen Hits Two-Week High as US Dollar Weakens Amid Trade Tensions

Japanese Yen Hits Two-Week High as US Dollar Weakens Amid Trade Tensions

The Japanese Yen (JPY) appreciated to its highest level in over two weeks against the US Dollar (USD) on Tuesday, driven by broad US Dollar weakness amid ongoing fiscal uncertainty and dovish expectations for the Federal Reserve (Fed).

The USD/JPY currency pair edged lower, trading close to the 143.00 mark during the US session, down roughly 0.70% for the day. Despite renewed trade tensions between the United States and Japan, the Yen’s strength reflects wider US Dollar softness as the key market driver.

Trade discussions between Washington and Tokyo remain stalled, with Japan resisting US demands to open its agricultural markets—especially for rice imports—while Washington seeks greater access for US car exports. US President Donald Trump highlighted these disputes on social media, noting Japan’s rice import resistance despite its domestic shortages.

Meanwhile, Japan’s au Jibun Bank Manufacturing PMI showed a return to expansion, and the Tankan survey indicated a moderate improvement in business sentiment, supporting the Yen’s recent gains.

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