Yen strengthens on safe-haven demand

The Japanese yen appreciated past 152 per dollar on Tuesday, recouping losses from the previous session as shifting US-China trade dynamics ahead of a potential Trump-Xi meeting in South Korea later this month lifted demand for the safe-haven currency.

Investors also continued to monitor Japan’s domestic political situation after the Komeito party announced its exit from the ruling coalition led by the Liberal Democratic Party, heightening doubts over Sanae Takaichi’s policy agenda and complicating her path to the premiership.

Meanwhile, Finance Minister Katsunobu Kato said Japan’s current environment differs from the Abenomics era of aggressive stimulus, noting that inflation, rather than deflation, is now the primary concern.

He also cautioned against one-sided and rapid currency moves, stressing that exchange rates should remain stable and aligned with economic fundamentals.