Dollar Maintains Strength Amidst Trade Tensions

The dollar remains strong against the yen following U.S. President Trump's pledge of further trade actions after announcing tariffs on Japan and other partners. Despite a recent rise, the dollar index is down since the introduction of 'Liberation Day' tariffs. Japan's negotiations with the U.S. remain unresolved.

In a volatile market, the dollar hovered near a two-week high against the yen on Wednesday, following U.S. President Donald Trump's announcement of 25% tariffs on Japan and other trade partners. Trump's ongoing trade threats have caused the greenback to gain significant ground against its peers.

The dollar index, despite recent gains, continues to be down over 6% since the unveiling of Trump's 'Liberation Day' tariffs in April. Observers note the ongoing tariff threats are seen as a strategic maneuver by Trump, as negotiations with trading partners press on.

Japan remains a focal point as it lags behind in reaching a trade deal with the U.S., adversely impacting its currency. With key elections approaching, Japanese policymakers anticipate further fiscal stimulus. In related news, the euro and sterling have shown marginal movements influenced by anticipated monetary policy shifts.

(With inputs from agencies.)