Yen Retreats On Stronger US Dollar

The Japanese yen is retreating against the US dollar due to the latter’s strength, driven by diverse employment data and a report indicating the possibility of the Trump administration’s tariffs being activated soon.

The US dollar rose for the second consecutive day, supported by preliminary employment data that highlighted a lower-than-expected increase in job growth. Additionally, a report published by CNN indicated that the Trump team may expedite the implementation of additional tariffs before any other economic and trade policies.

CNN reported that US President-elect Donald Trump is currently considering declaring a national economic emergency to start implementing the additional tariffs planned by him and his team.

Tariffs are one of the most important inflationary economic policies of the Trump administration, which the new administration intends to follow in the coming period. These tariffs and trade restrictions are likely to raise the cost of products and goods imported by the United States, an increase that is passed on to consumers, leading to higher inflation.

The USD/JPY pair rose to 158.33 from the previous daily close of 158.03. The pair fell to a low of 157.89 on Wednesday from a high of 158.54.