Trade Tensions Mount as Dollar Rises Amid Tariff Talks
The U.S. dollar strengthened for a third consecutive day against the yen, bolstered by President Trump's announcement of 25% tariffs on Japan and potential further trade measures. Despite stalled U.S.-Japan trade talks, currency dynamics are influenced by rising U.S. yields and Japanese election uncertainties.
The U.S. dollar continued its upward trend against the yen on Wednesday, rising for a third day, following President Donald Trump's declaration of leveling 25% tariffs on Japanese goods. This move signals potential further trade actions as Trump aims to negotiate better deals with key trade partners.
While the dollar gained strength, discussions between the U.S. and Japan remain deadlocked, with Japan standing firm on its rice market protections. Elections in Japan add another layer of complexity to the already tense trade negotiations.
Additionally, Trump has proposed significant tariffs on copper and hinted at new levies on semiconductors and pharmaceuticals, causing fluctuations across currency markets. Meanwhile, U.S. Treasury Secretary Scott Bessent plans to miss an upcoming G20 meeting but will attend the World Expo 2025 in Japan.
(With inputs from agencies.)
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