Yen Slides as Tariff Turmoil Fuels Dollar Rally

The Japanese yen softened as fresh uncertainty around US trade policy revived dollar strength and weighed on regional currencies. USD/JPY climbed 0.39% to 155.235, while the dollar index rose 0.2% to 97.90, reflecting renewed resilience in the greenback.

Markets reacted to the reintroduction of tariffs under a revised legal framework after the US Supreme Court struck down earlier emergency-based measures. The swift policy shift reignited concerns over global trade stability and increased pressure on export-sensitive currencies such as the yen.

Additional strain emerged after China announced export controls affecting Japanese firms, highlighting deteriorating regional trade relations. Elevated US Treasury yields and expectations that the Federal Reserve will keep rates steady until at least June have further reinforced dollar strength.

Read more on how tariff developments, dollar momentum and shifting central bank expectations could shape USD/JPY’s next move.