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Yen Rises Amid US-China Tensions and Rate Hike Speculation

10/15/2025

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Story summary
  • The Japanese Yen rose about 0.2% as trade-related risk aversion from US-China tensions increased.
  • Speculation about a Bank of Japan rate hike supports the Yen, but coalition breakup may limit gains.
  • US President Donald Trump has softened his stance on tariffs, influencing market sentiment and nudging USD/JPY toward 150.00.
  • Traders may hedge because a stronger Yen could pressure exporter profits, reflecting its impact on Japanese equities.