TOKYO – As Donald Trump makes recessions great again and the dollar a has-been, Japan’s yen is developing a safe-haven halo faster than Tokyo’s policymakers would like.
The extent to which the US president’s trade war is slamming confidence in dollar assets can be seen in the Japanese currency’s roughly 10% rally so far this year, trading today at around 144. The yen’s rally has also forced the Bank of Japan to abandon long-held plans to raise rates again today (May 1).
BOJ Governor Kazuo Ueda’s experience with the first 100 days of the Trump 2.0 presidency has been as chaotic as anyone’s. Back in January, Ueda was full-speed ahead with his two-year quest to end Japan’s deflation-era policy matrix.
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