USD/JPY COLLAPSES TO A 6-MONTH LOW.

USD/JPY COLLAPSES TO A 6-MONTH LOW: SAFE-HAVEN ASSETS IN DEMAND

The USD/JPY currency pair has recently fallen to a six-month low, trading around 145.57.

This decline is primarily attributed to U.S. President Donald Trump's announcement of comprehensive tariffs, which have heightened global economic uncertainty and driven investors toward safe-haven assets like the Japanese yen.​

On April 2, 2025, President Trump declared a national emergency to address persistent trade deficits, unveiling a two-tier tariff structure.

Baseline Tariff: A 10% tariff applied universally to imports from all countries, effective April 5, 2025.

Additional country-specific tariffs targeting approximately 60 nations, set to begin April 9, 2025.

These measures aim to reduce the trade deficit and bolster domestic manufacturing but have raised concerns about potential trade wars and global economic repercussions.​

The announcement of significant tariffs has led to market volatility, prompting investors to seek stability in safe-haven assets.

Consequently, the Japanese yen has appreciated, contributing to the depreciation of the USD/JPY pair. ​

Financial markets have reacted to the tariff news with declines in major stock indices and a weakened U.S. dollar.

This volatility has further fueled demand for the yen, traditionally viewed as a safe-haven currency during times of economic uncertainty.