Trump effect on yen-dollar rate may prove short-lived

Punitive threats and uncertainty divide views on tariffs' impact on forex market

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The yen weakened against the dollar ahead of U.S. President Donald Trump's inauguration in 2017 and this January. (Photo by Akira Kodaka)

FUTOSHI OGURI

TOKYO -- With the market seemingly divided over U.S. President Donald Trump's impact on exchange rates, speculation is growing that the yen soon could stabilize against the dollar as it did during his first term.

The yen weakened from around 150 to beyond 158 against the dollar between Trump's November election victory and early January, as market watchers projected his sweeping tariff proposals would lift U.S. interest rates and, by extension, the dollar.

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