Yen Rises as Trump’s Trade Threats Fuel Safe-Haven Demand

The Japanese yen is surging as investors seek safety amid renewed trade tensions sparked by US President Donald Trump.

Trump’s decision on Friday to escalate trade disputes has piled pressure on the US dollar, with many analysts believing the impact of tariffs will be more damaging to the American economy than other nations. This, combined with existing worries about the US fiscal outlook, has driven investors towards safe-haven currencies like the yen.

While Trump has a history of backtracking on threats, like those made to the EU, Apple, and Samsung, it’s unclear when he might do so this time. The constant uncertainty surrounding his policies is weakening the dollar’s position and amplifying fears of a US recession.