Investors rushed into the perceived safety of Japanese yen on Friday, sending it to a four-month high against the dollar, after U.S. President Donald Trump’s threat to impose tariffs on Mexico roiled financial markets and stoked recession fears.
Taking aim at what he said was a surge of illegal immigrants across the southern border, Trump vowed on Thursday to impose a tariff on all goods coming from Mexico, starting at 5% and ratcheting higher until the flow of people ceases.
The yen increased 0.89% at 108.655 per dollar and 0.76% per euro, respectively.
For May, the Japanese currency was on track to gain 2.50% against the dollar and 3.17% versus the euro.
The Swiss Franc also enticed safe-haven buying, rising 0.26% at $1.0051.
Source : Reuters