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23.02.202602:04:05UTC+00Yen Gains on Dollar Weakness

The Japanese yen strengthened toward 154 per dollar on Monday, recovering losses from the previous week as the US dollar weakened following fresh tariff threats from President Donald Trump. Trump announced plans for a 15% global levy after the US Supreme Court rejected his broader reciprocal tariff proposal, raising concerns that existing trade agreements between the United States and its partners could be destabilized. Still, senior US officials sought to reassure markets, emphasizing that current trade deals would remain in place.

In Japan, Prime Minister Sanae Takaichi attempted to soothe market jitters sparked by her expansionary spending plans, presenting what she called a “responsible and proactive” fiscal policy. Her strategy aims to strike a balance between robust capital investment and fiscal discipline, with a particular focus on bolstering investment in economic security, agriculture, energy, and healthcare. Trading activity is expected to remain muted due to a public holiday in Japan.

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