Yen falls sharply to 1-month low after US-China trade announcement

Investors reverse 'safe haven' flow to Japanese currency, buy back dollars

20250512 U.S. Japan flags

The announcement of a tariff agreement between the U.S. and China on Monday triggered a reversal of recent yen-buying/dollar-selling activities that had been ongoing since the start of the Trump administration's trade war.  (Photo by Yuichiro Takagi)

Nikkei staff writers

TOKYO -- The Japanese yen declined sharply to the lower 148 range against the dollar on Monday, after the U.S. and Chinese governments announced that they would significantly reduce the high tariffs that they had imposed on each other for 90 days.

The yen rapidly slid to 148.22 per dollar, a low since April 9. Before the announcement, the dollar was trading roughly at 146.10 yen.

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