Yen Outperforms G-10 Peers as Traders Look Past Trump to BOJ
- Overnight index swaps show strong likelihood of rate hike
- Currency rallies to its strongest level in about a month
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The yen was alone among Group-of-10 currencies in rising against the dollar on Tuesday as traders wagered that Donald Trump’s first salvo on tariffs won’t stop a potential interest rate hike from the Bank of Japan on Friday.
The Japanese currency appreciated as much 0.5% to 154.78 against the dollar, its strongest level since Dec. 19, despite broad gains in the greenback after the US president said he plans to enact tariffs of as much as 25% on Mexico and Canada in February.