Yen Surges as U.S. Economic Slowdown Looms

The yen reached a five-month high as fears of a U.S. economic slowdown took hold, causing a dip in U.S. stocks and the dollar. The Nasdaq fell 4% and S&P 500 slid 2.7%. Despite moderate movements in other currencies, the euro is boosted by German fiscal plans.

The yen emerged as a beacon for investors on Tuesday, hitting a five-month peak amid escalating concerns over U.S. economic growth slowdown driven by tariffs.

The Nasdaq dropped 4% overnight, and the S&P 500 by 2.7%, aligning equities with prior signals from bonds and currencies.

Despite a 7% drop from January highs against the yen, the dollar struggles as a safe haven, with the euro buoyed by Germany's defense spending plans.