EUR/JPY Holds Gains Near 164.00 as Yen Loses Safe-Haven Appeal After Trump Tariff Stay

EUR/JPY Holds Gains Near 164.00 as Yen Loses Safe-Haven Appeal After Trump Tariff Stay

The EUR/JPY currency pair regained lost ground, trading around 164.00 during Thursday’s Asian session. The rise is mainly driven by the weakening of the Japanese Yen (JPY) as safe-haven demand diminishes following a US federal court's decision to block President Trump's "Liberation Day" tariffs.

US Court Blocks Trump’s "Liberation Day" Tariffs

A three-judge panel at the Manhattan Court of International Trade ruled that Trump exceeded his authority by enacting the tariffs, declaring the executive orders illegal. These tariffs targeted imports from countries with large trade surpluses like China and the European Union, imposing a 10% tariff on most goods imported into the US.

Despite the setback, the Trump administration has appealed the ruling and shows no signs of backing down, with Trump himself asserting his stance publicly on social media. For more on the ongoing tariff disputes, check out our article on US Trade Policy Updates.

ECB’s Inflation Outlook Adds Pressure

Meanwhile, ECB Governing Council member Klaas Knot emphasized the challenges the Eurozone’s inflation trajectory poses for the central bank. The inflation trend complicates decisions regarding monetary policy tightening, impacting the euro and currency pairs like EUR/JPY.

Explore detailed insights on the ECB’s monetary policy in our Eurozone Inflation and ECB Policy Analysis.

Bank of Japan Cautious Amid Financial Stability Concerns

Bank of Japan (BoJ) Governor Kazuo Ueda highlighted concerns about the potential spillover effects on shorter-term debt markets due to rising super-long-term bond yields. Ueda’s remarks reflect a cautious stance on financial stability as interest rate dynamics shift in Japan.

The BoJ remains prepared to adjust policy to meet inflation targets, which could influence the Yen’s performance going forward. Learn more in our Bank of Japan Monetary Policy Updates.

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• US Trade Policy Updates
• Eurozone Inflation and ECB Policy Analysis
• Bank of Japan Monetary Policy Updates
• Forex Market Trends and Analysis