The U.S. dollar and yen, considered safe-haven currencies, strengthened on Wednesday as market nerves intensified over President Donald Trump’s recent tariff threats and the fraught Russia-Ukraine peace talks. The dollar rose against riskier currencies like the euro, sterling, and emerging market options, reflecting increasing investor caution.
Comments from Trump about imposing auto tariffs of up to 25%, and similar duties on semiconductors and pharmaceuticals bolstered the yen’s rise against major currencies, including the dollar itself. As the market eagerly anticipates upcoming U.S. levies on Canada and Mexico, the mood remains volatile.
In currency trade, the dollar decreased 0.4% against the yen, while the euro fell 0.6% against the same. Meanwhile, escalating UK inflation touched a 10-month high of 3%, challenging the Bank of England’s inflation outlook. Additionally, international efforts continue as the Trump administration engages in talks with Russia to resolve the Ukraine conflict.
(With inputs from agencies.)
