- The manufacturing PMI ISM of the US of May fell to a new minimum of six months.
- The USD/JPY extends losses to the increase in demand for the Yen as a safe refuge.
- The US dollar falls against its main counterparts with Trump tariffs again in the focus.
- The Japanese Yen benefits from his attractiveness as a safe refuge, with the USD/JPy pair contributing below 143.00 at the time of writing.
The Japanese Yen (JPY) is gaining strength against the US dollar (USD) on Monday, since investors seek refuge in Yen’s safe refuge.
With the concerns renewed around the aggressive tariff policies of US President Donald Trump, who trigger a wave of caution in the market, the USD/JPY has extended the losses, quoting below 143.00 at the time of writing.
Trump tariffs weigh on the US dollar, which falls to a minimum of six weeks according to the DXY
One of the key factors promoted by the current weakness of the US dollar is the growing anxiety around the impact of President Trump’s commercial policies. The US has recently threatened to double tariffs on steel and aluminum imports from 25% to 50%, which has generated fears of a commercial war in escalation.
These movements are generating concerns among investors that the global economy could face slower growth, particularly as inflationary pressures of the highest import costs could have an impact on the economy.
Even in the United States, the purchasing managers index (PMI) of May fell to 48.5, below the forecasts of a slight increase to 49.5 and reaching a minimum of six months.
Trump’s tariffs, together with the current commercial stagnation with China and other important economies, have the potential to hinder US economic growth if tariffs continue to increase, companies could face greater supplies costs, which could lead to reduced corporate benefit margins and a lower consumer expense.
In contrast, the Japanese yen is gaining ground. The YEN is considered a safe shelter currency, which means that in times of global uncertainty, investors tend to move their assets towards the YEN. Its appeal as a safe refuge has been particularly evident after the growing tariff threats of the US and uncertainty about global trade.
As the markets continue to digest the implications of Trump’s tariff policies, the YEN has been seen in front of the USD, with the pair of USD/JPY currencies falling to key support levels. The relatively stable economic and political environment of Japan, along with its solid industrial base and low inflation, continues to make the Yen an attractive alternative to the riskiest currencies during turbulent times.
Market participants are closely monitoring developments in the US commercial policy, since any new advertisement on tariffs could trigger greater volatility in the USD/JPY torque. The next meeting between US President Trump and the new German Foreign Minister Friedrich Merz, who is expected to take place this week, could also add fuel to the ongoing uncertainty and influence the direction of the dollar.
And in Japanese price this week
The lower table shows the change percentage of Japanese Yen (JPY) compared to the main currencies this week. Yen Japanese was the strongest currency against the US dollar.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.70% | -0.47% | -0.67% | -0.17% | -0.79% | -1.05% | -0.68% | |
| EUR | 0.70% | 0.23% | 0.05% | 0.52% | -0.08% | -0.38% | 0.01% | |
| GBP | 0.47% | -0.23% | -0.15% | 0.29% | -0.31% | -0.61% | -0.22% | |
| JPY | 0.67% | -0.05% | 0.15% | 0.50% | -0.13% | -0.40% | -0.11% | |
| CAD | 0.17% | -0.52% | -0.29% | -0.50% | -0.61% | -0.89% | -0.51% | |
| Aud | 0.79% | 0.08% | 0.31% | 0.13% | 0.61% | -0.24% | 0.17% | |
| NZD | 1.05% | 0.38% | 0.61% | 0.40% | 0.89% | 0.24% | 0.39% | |
| CHF | 0.68% | -0.01% | 0.22% | 0.11% | 0.51% | -0.17% | -0.39% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Japanese yen from the left column and move along the horizontal line to the US dollar, the percentage change shown in the picture will represent the JPY (base)/USD (quotation).
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.
