The U.S. dollar extended gains against the yen for a third consecutive day on Wednesday, boosted by rising U.S. yields and renewed trade tensions. President Donald Trump announced 25% tariffs on Japan and other nations, with more trade-related proclamations expected. Trump stated that "a minimum of 7 countries" will be addressed in new announcements, fueling speculation on further tariffs or deals.
The dollar rose 0.2% to 146.85 yen, hitting a two-week high, as markets priced in higher U.S. yields and fiscal concerns in Japan ahead of the July 20 upper house elections. IG analyst Tony Sycamore noted stalled U.S.-Japan talks, largely due to Japan’s rice market protections, which remain a sticking point.
The dollar index held steady at 97.582 after two days of gains, reflecting strength across major peers. The euro remained flat at $1.1720, while the British pound slipped 0.1% to $1.35795. The Australian dollar dipped to $0.6526, while New Zealand’s kiwi traded at $0.5993.
Trump’s tariff plans include a 50% duty on imported copper, with semiconductors and pharmaceuticals also targeted in upcoming measures. Meanwhile, the European Union is reportedly seeking exemptions from the 10% U.S. baseline tariff, according to EU sources.
Bank of Japan board member Junko Koeda voiced concerns about inflationary pressures from rising rice prices, which could have second-round effects on core inflation. Separately, U.S. Treasury Secretary Scott Bessent will skip the G20 finance meeting in South Africa but is set to attend the World Expo 2025 in Osaka, Japan.
As global markets react to trade policy shifts and currency movements, investors remain focused on central bank responses and geopolitical developments.


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