The Nikkei newspaper said the yen was weaker after US authorities took the lead in a so-called rate probe last month to prop up the Japanese currency. Washington’s latest tariff threats are clouding the outlook for global trade following a Supreme Court ruling that Trump’s use of a 1977 emergency law to impose tariffs exceeded his authority.
“Now we’re back in a very uncertain environment,” Ray Attrill, head of currency strategy at National Australia Bank, said on the NAB podcast. “It’s just uncertainty about what the future trade landscape will look like, just at a time where most countries have signed or are about to sign trade deals.”
The dollar index, which measures the greenback against a basket of currencies, was flat at 97.69 after jumping 0.45% in the previous session.
The euro rose 0.07% to $1.1793, while the yen weakened 0.03% against the greenback to 154.71 per dollar. Trump said on Saturday that he would raise temporary tariffs on US imports from all countries to 15% from 10%, the maximum level allowed under the law. On Monday, he took to social media to say that countries that “play the game” following the Supreme Court ruling will face higher duties. The Wall Street Journal said the Trump administration is considering new national security tariffs on industries such as large-scale batteries, cast iron and iron fittings, plastic piping, industrial chemicals and power grid and telecom equipment. The European Parliament decided on Monday to postpone a vote on the European Union’s trade deal with the United States because of new import taxes.
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The Japanese government said Trade Minister Ryosei Akazawa spoke with US Commerce Secretary Howard Lutnick on Monday and requested that Tokyo’s treatment under the new tariff measures be no less favorable than last year’s agreement.
With Japan reopening after a long weekend, the yen weakened slightly after the Nikkei reported that the U.S. had conducted market rate probes in January without Tokyo’s request and was poised to intervene jointly to prop up the yen. Renewed trade uncertainties come as doubts about the sustainability of large-scale investments in artificial intelligence and Federal Reserve policymakers worry about elevated inflation. The US central bank is expected to keep rates on hold until at least June. Fed Governor Christopher Waller said on Monday he was open to keeping interest rates on hold at the Fed’s March meeting if the upcoming February jobs data suggests the US labor market has “turned to a more solid footing” after a weak 2025.
Traders also focus on rising geopolitical tensions. The State Department is evicting non-essential government employees and their eligible family members from the US Embassy in Beirut, amid growing concerns about the risk of military conflict with Iran, a senior State Department official said Monday.
The Australian dollar strengthened 0.1% against the greenback at $0.7061. New Zealand’s kiwi rose 0.08% to $0.5961.
Among cryptocurrencies, bitcoin rose 0.6% to $64,961.86, and ether gained 0.2% to $1,866.88.
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