The U.S. dollar reached a three-week high against the yen on Tuesday, buoyed by strong U.S. services data and cautious optimism surrounding potential tariff changes. President Donald Trump’s comments that not all of the threatened tariffs would be imposed on April 2, and that some countries might be exempt, helped ease concerns about a U.S. economic slowdown, positively impacting both the dollar and Wall Street sentiment.
The dollar rose to 150.56 yen, having briefly surpassed 150 yen earlier in the session, reaching a peak of 150.92 yen. Despite these gains, there was a lack of momentum in trading, reflecting market uncertainty about the specifics of the tariff measures.
Vishnu Varathan, head of economics and strategy at Mizuho Bank, noted that until there is clarity on which countries will be exempt from tariffs, markets are hesitant to make bold moves. The volatility of Trump’s tariff decisions and the sensitivity of the yen to such moves suggest a cautious approach, especially in light of Japan’s weaker economic data.
The dollar also strengthened against the euro, reaching its highest level since March 6 at $1.0781, as the euro’s rally lost momentum. The British pound dropped to a two-week low before steadying at $1.2935.
Despite the dollar’s recent strength, concerns over the implications of new tariffs on the U.S. economy persist. Trump’s vow to impose automobile tariffs has added to market uncertainties. Data from the Commodity Futures Trading Commission showed speculators turning net bearish on the U.S. dollar for the first time since October, though the overall position remains neutral.
The Australian dollar gained some support from the optimism surrounding Trump’s tariff flexibility, holding steady at $0.6287. Meanwhile, Bitcoin hit a two-week high of $88,771 but experienced a slight dip, trading at $86,497. The New Zealand dollar was near its lowest levels in a week, trading at $0.5725.
Related Topics:
Trump’s Trade War Boosts Chinese Stocks Amid Global Uncertainty
Mortgage Repayment or Investing? Finance Expert Reveals $269,331 Difference
Standard Chartered Identifies Reasons Behind Bitcoin’s Decline and Recovery Prospects
