USD/JPY rises strongly to near 145.45 as the US Dollar strengthens amid US trade jitters.
US President Trump prepares to announce tariff rates for nations that have not made trade deal with Washington.
Investors doubt whether the BoJ will raise interest rates again this year.
The USD/JPY pair gains sharply to near 145.45 during the European trading session on Monday, the highest level seen in a week. The pair strengthens as the US Dollar (USD) trades firmly, with investors awaiting the name of likely countries that will receive letters from United States (US) President Donald Trump, specifying reciprocal tariffs.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, revisits the weekly high around 97.45.
Over the weekend, US President Trump said that he will release letters outlining import duty rates for 12 countries on Monday in the countdown to the tariff deadline on July 9. So far, the US has announced trade agreements with the United Kingdom (UK), and Vietnam and has signed a limited pact with China.
Market participants worry that the imposition of reciprocal tariffs by the US on one of its leading trading partners will disorder the global trade. Such a scenario will increase demand for safe-haven assets, such as the Japanese Yen (JPY).
On the Tokyo front, investors seek fresh cues about whether the Bank of Japan (BoJ) will raise interest rates again this year. Last week, BoJ board member Hajime Takata highlighted the need of policy accommodation to weather the impact of tariffs by the US.
“My view is that the BoJ needs to support economic activity for the time being by maintaining its current accommodative monetary policy stance, Takata said.
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