The Japanese yen held steady around 154 per dollar on Tuesday, up about 0.5% this week, as US President-elect Donald Trump threatened additional tariffs on China, Mexico, and Canada, souring global risk sentiment.
Japanese yen holds steady
The yen also received support from Trump’s nomination of Scott Bessent as US Treasury Secretary, which provided a sense of stability in the markets and led traders to unwind some of their "Trump trades." Domestically, investors are focused on upcoming inflation data from Tokyo, which is seen as a key indicator of national price trends.
Another rate hike is possible
On the monetary policy front, Bank of Japan Governor Kazuo Ueda recently suggested the possibility of another interest rate hike as early as December, citing concerns about the yen’s recent weakness.
