The yen saw a sharp price swing against the dollar on Tuesday following the latest tariff remarks by US President Donald Trump.
During Tokyo trading, the Japanese currency briefly fell after Trump said he’s considering a 25-percent levy on imports from Canada and Mexico. He said he could introduce the change from February 1.
The president didn’t mention tariffs in his inaugural speech on Monday. The omission prompted investors to sell the greenback and buy the yen. The Japanese currency strengthened to the upper 154 level.
But the subsequent tariff threat drove a new round of dollar-buying. At one point the yen weakened to the lower 156 range.
It wasn’t long before it started to recover though, with investors apparently noting that Trump didn’t mention Japan.
On the Tokyo Stock Exchange, investors sold stocks in automakers and other exporters on concerns over the US policy.
Analysts say currency and stock markets are expected to remain volatile for the time being, influenced by Trump’s remarks, as uncertainties continue.
