"Dollar Soars to Two-Week High Against Yen Amid Escalating Trade War Threats"

The dollar is near a two-week high against the yen due to Trump’s announcement of tariffs on seven countries, including 25% tariffs on Japan. Trump has issued tariff letters to Algeria, Iraq, Libya, Sri Lanka, and the Philippines, with tariffs up to 30% starting August 1. The dollar index is down 6% since Trump’s “Liberation Day” tariffs in April.

Trump plans to release tariff letters to more countries, causing uncertainty in the market. He also threatens a 50% tariff on copper and levies on semiconductors and pharmaceuticals. The dollar is up 1.5% this week, the most significant increase since mid-December, trading at 146.35 yen.

Japan struggles to make a deal with the U.S., impacting its currency. Speculation of opposition parties gaining seats in Japan’s upper house affects the yen. U.S. Treasury Secretary Bessent may discuss trade negotiations at the World Expo 2025 in Osaka later this month. The euro slips 0.09% against the dollar.

Federal Reserve minutes show only “a couple” of officials considering interest rate cuts due to Trump’s tariffs. The euro remains strong against the dollar, with markets pricing in interest rate differentials between the U.S. and Europe. The dollar index is slightly down, while sterling remains at $1.36. New Zealand’s dollar fluctuates after the central bank leaves the interest rate steady.

Read more at Yahoo Finance: Dollar at more than two-week high versus yen as trade war heats up