Dollar Gains on Yen Slump Amid U.S. Tariff Delays
The dollar strengthened against the yen following Japan's bond yield drop and President Donald Trump's delay in increasing tariffs on the European Union. Markets reacted to the reopening of U.S. and UK markets after the holiday, with Commerzbank analysts noting a recovery from previous moves. Meanwhile, the yen was pressured by domestic drivers.
The strength of the dollar surged on Tuesday, as the yen was weakened by Japan's declining long-dated bond yields, alongside relief from investors over President Trump's decision to delay tariff hikes on the European Union.
Catching up on Sunday's developments due to Monday's holiday closure, markets saw a bounce in the euro, benefiting the dollar, which rose about 0.4% in the index. Analysts suggested Trump's weekend retreat contributed to this uplift. By Tuesday, with the UK market open again, the dollar exhibited robust recovery.
The dollar's strength was notably felt against the yen, rising 0.86% to 144.075 yen. The yen's drop followed a Reuters report about Japan's Ministry of Finance considering trimming super-long bond issuances amidst global yield surges. Japan continues to monitor debt closely, with signs of readiness to adjust interest rates to curb consumer price rise.
(With inputs from agencies.)
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