Yen Surges to Upper 147 JPY per Dollar Amid U.S. Reciprocal Tariff Shock

# Yen Surges to Late 147 Level Against Dollar Amid Escalating Trade Tensions Tokyo—The Japanese yen advanced sharply on Monday, trading at the upper 147 range against the U.S. dollar, as global economic slowdown fears intensified following U.S. President Donald Trump's announcement of steeper-than-expected reciprocal tariffs. At 8:30 a.m. local time, the yen traded at 1 dollar = ¥147.95–¥147.96 in the Tokyo foreign exchange market, climbing ¥1.70 from Friday’s close at 5:00 p.m. # Trump's Reciprocal Tariffs Drive Market Reactions President Trump released comprehensive details of a new tariff policy, which aims to raise tariff rates to the levels imposed by trade partner nations. Effective immediately, the policy imposes a flat 10% tariff on all imports into the United States, while applying significantly higher rates on select partners: South Korea (25%), Japan (24%), China (34%), and the European Union (20%). The aggressive trade strategy rattled global markets, with both Nikkei average futures and U.S. stock index futures taking a significant hit. This, in turn, drove investors toward safe-haven assets like the yen, buoying its value against the dollar. # Yen Continues to Strengthen Amid Market Volatility The yen's momentum carried into later trading. At 9:37 a.m., the yen surged ¥1.55, or 1.03%, to trade at 1 dollar = ¥148.10–¥148.12. In the Australian Sydney foreign exchange market, the yen mirrored this upward trend, starting the session up ¥0.70 at 1 dollar = ¥148.85–¥148.95 compared to previous levels. # U.S. Tariffs Weigh on Sentiment; Treasury Yields Dive On the preceding Friday in New York foreign exchange trading, the yen ended higher at 1 dollar = ¥149.30–¥149.40, gaining ¥0.30 from Thursday. President Trump's imposition of tariffs on trade partners fed concerns over a potential U.S. economic downturn and a prolonged trade war, prompting a selloff in dollars and robust demand for yen. The layered tariff policy has sparked market anxiety over inflation and subdued consumer spending, with fears of stagnation weighing heavily on U.S. economic prospects. Correspondingly, yields on 10-year U.S. Treasury bonds briefly retreated to 4.11%, their lowest level since early March. # Additional Tariffs on Autos Add to Growth Concerns President Trump reinforced his stance on Monday, confirming a 25% additional tariff on imported automobiles, effective immediately. Analysts warn such protectionist measures could stoke inflationary pressures and dampen consumption, exacerbating worries over U.S. economic stagnation. # Yen Gains Ground Against Euro; Euro Strengthens Versus Dollar The Japanese yen also strengthened against the euro in early Tokyo trading. At 9:35 a.m., the yen traded at 1 euro = ¥161.36–¥161.37, up ¥0.13 or 0.08% from the previous session. Meanwhile, the euro extended its gains against the dollar, climbing $0.0099 or 0.91% to 1 euro = $1.0890–$1.0891 at 9:35 a.m. Investors continue to monitor developments closely as the evolving trade tensions reshape market dynamics globally.