Select Language

USD/JPY jumps to near 145.40 as US trade jitters resurface

Breaking news

USD/JPY jumps to near 145.40 as US trade jitters resurface

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.07.07 18:36
USD/JPY jumps to near 145.40 as US trade jitters resurface

update 2025.07.07 18:36

  • USD/JPY rises strongly to near 145.45 as the US Dollar strengthens amid US trade jitters.
  • US President Trump prepares to announce tariff rates for nations that have not made trade deal with Washington.
  • Investors doubt whether the BoJ will raise interest rates again this year.

The USD/JPY pair gains sharply to near 145.45 during the European trading session on Monday, the highest level seen in a week. The pair strengthens as the US Dollar (USD) trades firmly, with investors awaiting the name of likely countries that will receive letters from United States (US) President Donald Trump, specifying reciprocal tariffs.

The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, revisits the weekly high around 97.45.

Over the weekend, US President Trump said that he will release letters outlining import duty rates for 12 countries on Monday in the countdown to the tariff deadline on July 9. So far, the US has announced trade agreements with the United Kingdom (UK), and Vietnam and has signed a limited pact with China.

Market participants worry that the imposition of reciprocal tariffs by the US on one of its leading trading partners will disorder the global trade. Such a scenario will increase demand for safe-haven assets, such as the Japanese Yen (JPY).

On the Tokyo front, investors seek fresh cues about whether the Bank of Japan (BoJ) will raise interest rates again this year. Last week, BoJ board member Hajime Takata highlighted the need of policy accommodation to weather the impact of tariffs by the US.

"My view is that the BoJ needs to support economic activity for the time being by maintaining its current accommodative monetary policy stance, Takata said.

 

US Dollar FAQs

The US Dollar (USD) is the official currency of the United States of America, and the 'de facto' currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world's reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.

The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.

In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed's weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.

Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.


 


Date

Created

 : 2025.07.07

Update

Last updated

 : 2025.07.07

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

EUR/JPY rises on EU-US trade deal hopes as Trump announces 25% tariffs on Japan

The Euro (EUR) is strengthening against the Japanese Yen (JPY) as investors shift focus to trade talks ahead of the Wednesday tariff deadline.
New
update2025.07.08 02:01

EUR/CHF rangebound amid diverging ECB and SNB policies

The Euro (EUR) struggles to gain traction against the Swiss Franc (CHF) on Monday, with EUR/CHF hovering around the 0.9350 level amid diverging monetary policies from the European Central Bank (ECB) and the Swiss National Bank (SNB), coupled with persistent safe-haven demand for the Swiss Franc.
New
update2025.07.08 01:25

GBP/USD holds above key level, despite rate divergene and trade war jitters

The Pound Sterling is virtually unchanged during the North American session, yet it remains above a key technical level, following a solid US jobs report in the United States (US). This, along with the likelihood of further tax hikes by the UK government, is exerting pressure on Cable.
New
update2025.07.08 00:50

EUR/USD dips as Fed rate cut bets fade and tariff deadline nears

The Euro (EUR) is falling against the US Dollar (USD) at the start of the American session, with EUR/USD testing 1.7360 at the time of writing.
New
update2025.07.08 00:05

NZD/USD declines for third day on risk aversion ahead of RBNZ rate decision

The New Zealand Dollar (NZD) extends its losing streak against the US Dollar (USD) for the third consecutive day on Monday, with the NZD/USD trading near 0.6005, down nearly 0.90% on the day.
New
update2025.07.07 23:33

AUD/USD declines as market braces for RBA rate cut amid rising trade tensions

The Australian Dollar (AUD) weakens further against the US Dollar (USD) on Monday, marking its third consecutive daily decline, as investors grow increasingly confident the Reserve Bank of Australia (RBA) will deliver another rate cut at Tuesday's meeting.
New
update2025.07.07 22:12

Silver slides as a rebound in yields supports a stronger US Dollar

Silver bulls are suffering losses Monday as the strong US Dollar and rising US yields reduce demand for precious metals.
New
update2025.07.07 22:03

US Treasury Sec. Bessent: Will have several trade announcements in next 48 hours

US Treasury Secretary Scott Bessent told CNBC on Monday that they are going to have several trade announcements in the next 48 hours.
New
update2025.07.07 21:57

US Dollar recovers as market braces for tariff impact

The US Dollar (USD) kicks off the week on a firmer footing against its major peers, underpinned by safe-haven demand and reduced odds of near-term Federal Reserve (Fed) interest rate cuts.
New
update2025.07.07 21:33

EUR/GBP Price Forecast: Euro has lost steam and is likely to retest 0.8600

The Pound is faring better than the Euro in a risk-averse market, as investors await more clarity about the size of the US tariffs and the date of their introduction.
New
update2025.07.07 21:04

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel