- The Japanese Yen records profits in five of the last six days against the US dollar.
- The USD/JPY stabilizes after falling to 144.09 in the first Asian hours.
- Tokyo rejects US tariff pressure before the important commercial negotiations.
The Japanese Yen (JPY) continues to strengthen itself against the US dollar (USD) on Tuesday, marking the second consecutive day of profits in the middle of a wide weakness of the USD, although the USD/JPY pair is quoted flat about 144.75 in US hours. The pair fell to a minimum intradication of 144.09 during the first hours of Asian negotiation before recovering during the European session.
In contrast, the index of the US dollar (DXY), which measures the USD in front of a basket of six main currencies, remains subdued for the second day, since the feeling weakened after the reduction of Moody’s to the Credit Qualification of the US of USA AA AA1.
Meanwhile, operators remain cautious before the renewed trade negotiations between Japan and the United States (USA), which will resume in Washington later this week. It is expected that Japanese Minister, Ryosei Akazawa, attends the third round of conversations at the ministerial level, with the US trade representative, Jamieson Greer, also scheduled to participate.
At a press conference on Tuesday, Akazawa reiterated Japan’s firm position on tariffs:
“The US series of tariffs, including reciprocal tariffs as well as cars, cars, steel and aluminum parts, are unfortunate. There is no change in our position to seek a review, which is to say, an elimination of them,” he said.
While US officials press Japan for an early conclusion of negotiations, suggesting that reaching an agreement soon would give Tokyo an advantage over other countries that are still negotiating.
Looking ahead, market participants will maintain a close monitoring of Japan’s next economic data, which could influence both the feeling of the market and monetary policy expectations. The Ministry of Finance will publish commercial figures on April on Wednesday, providing a snapshot of how exports and imports of Japan are in the midst of ongoing global commercial tensions and the weakest demand for key partners such as China and the USA. Then, on Thursday afternoon, attention will focus on the situation of inflation in Japan, with the consumer price index (IPC) of April.
FAQS tariffs
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
