Yen Rallies as Tariff Anticipation Dents Sentiment
The yen rose, outperforming its Group-of-10 peers as risk-averse investors bought the haven currency ahead of a barrage of tariffs expected from President Donald Trump this week.
USD/JPY fell as much as 0.8% to 148.70, the lowest since March 21. Global stocks sold off, with the Nikkei 225 sinking to the lowest level in over six months, while European stock markets fell more than 1%.
The Bloomberg Dollar Spot Index slipped as much as 0.2% before trading largely unchanged in London trade; the Treasury 10-year yield fell 6 basis points to 4.2%.
US data on Friday showing weaker-than-expected consumer spending and rising inflation also weighed on risk sentiment.
“If US tariff increases are benign then this will galvanize USD bears, as relief can fuel a risk appetite-seeking environment,” Paul Mackel, global head of FX research at HSBC, wrote in a note; “The opposite should also hold true, especially if countries react with countermeasures that add to global growth concerns”.
EUR/USD slipped 0.2% to 1.0807.
GBP/USD down 0.2% at 1.2919.
Source : Bloomberg
