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5/31, 8:05 AM (Source: TeleTrader)
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Yen rallies on US tariffs for Mexican goods

Japan's currency, one of the most conventional safe haven assets, reached the highest levels almost since the start of the year against the euro, the Australian dollar and the pound on Friday. The country's car producers plunged as United States President Donald Trump moved the dispute about illegal immigration to the trade front, announcing 5% tariffs would be introduced and gradually increased on products from Mexico, which has a strong automotive industry.

The move could disturb the establishment of the US-Mexico-Canada Agreement, which is set to replace the North American Free Trade Agreement. At the same time, the administration in Washington is in an intensifying trade war against China.

The dollar fell 0.61% to ¥108.944 at 8:03 am CET after touching ¥108.885 for the first time since February 1. The euro was down 0.58% at ¥121.28 compared to the session low of ¥121.165, unseen since January 3. The Australian dollar was down 0.52% against the yen, at 75.353. The exchange rate today dipped to ¥75.29, also the weakest mark in almost five months. The pound declined 0.55% to ¥137.42 following a slide to ¥137.33, last seen on January 3. The Swiss franc fell 0.41% to ¥138.325 after slumping to ¥108.245, a three-week low.

Breaking the News / IT