The yen outperformed the market, supported by growing bets on a December interest rate hike in Japan, and position adjustments.
The dollar fell more than 1% against the yen, with selling accelerating after the pair fell below its 200-day moving average at 151.998.
Analysts pointed to some relief that the country is not in the crosshairs of Trump’s potential tariffs.
“Japan has a strong hand in dealing with US trade concerns,” said Jane Foley, forex strategist at Rabobank.
She added that Japan “is the largest external holder of US Treasury bonds and the largest provider of foreign direct investment in the United States.”
The dollar fell in recent transactions by 1.09% to 151.58 yen, after recording 151.20 yen, its lowest level since October 23. The dollar fell by about 2% in two sessions.
“The fact that tariffs on China will now only increase by 10% and not 60%, as we previously threatened, has been interpreted positively for the yen,” said Carsten Fritsch, a strategist at Commerzbank.
Data last week showed that Japan’s exports expanded faster than expected in October, led by a recovery in demand for chip equipment in China.
