Dollar/yen slips to 159.29 as Trump delays 50% Canada tariffs

Dollar/yen weakened to 159.29 in Tokyo morning trade on the 19th after President Trump said on social media he would delay 50% additional tariffs on Canada for three days, prompting U.S. dollar selling against the Canadian dollar that spilled into other major pairs. The pair was at 159.36-36 at noon, down 36 sen from 159.72-72 at 5 p.m. the previous day, while euro-yen eased to 184.57-58 and euro-dollar rose to 1.1582-1582. Earlier pressure came from generally soft U.S. economic indicators and lower U.S. long-term interest rates, although elevated crude oil futures and uncertainty over the Middle East had kept dollar/yen in the upper 159.60-70 range in overseas trading. The Nikkei Stock Average's sharp decline showed equity-market caution remained in place, even as Japan's June core machinery orders, a leading gauge of capital spending, rose 9.7% month-on-month against a 7.8% market forecast after a previous -12.4% reading. Markets are now focused on whether the Trump administration carries through with tariffs after the three-day delay, alongside the path of U.S. yields and developments in the Middle East.

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