Trump's Tariff Onslaught Could Hit Japan
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Bloomberg |
The yen surged amid mounting demand for haven assets after China retaliated against US tariffs, prompting traders to rethink when the Bank of Japan’s next rate hike could come.
Reuters |
Trump's decision to impose a 25% levy on auto imports, and a reciprocal 24% tariff on other Japanese goods, is expected to deal a huge blow to Japan's export-heavy economy.
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US Treasury Secretary Scott Bessent suggested he’s not concerned about the yen’s recent appreciation against the dollar, a sign that past interventions to strengthen the yen by Japan’s authorities won’t impede forthcoming trade talks between the two nations.
Japan's Nikkei share average slipped on Wednesday, ending nearly 4% lower in a broad sell-off, as traders gauged concerns over a potential economic slowdown amid an intensifying trade war between the United States and China.
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The narrowing of the US-Japan rate differential drives flows toward the lower-yielding JPY.
Three Japanese companies have postponed the sale of 100 billion yen ($678.43 million) worth of yen-denominated bonds in the wake of global financial market volatility induced by U.S. tariff announcements,
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With U.S. markets in turmoil, the Oracle of Omaha is once again turning his gaze eastward, with Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK) planning a new round of Yen-denominated bonds, which it plans to invest primarily in five Japanese trading
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Nintendo has confirmed a much cheaper, Japanese language-only Nintendo Switch 2 — and even Duolingo is poking fun at the price situation.
The USD/JPY exchange rate crashed to a low of 144.53 on Monday as investors moved to the safety of the Japanese yen. It dropped to 144.53, its lowest level since October 2, and 8% below the highest point in January.