(April 3): The yen was the best performer among major currencies after US President Donald Trump’s tariffs announcement boosted haven demand.

Japan’s currency gained as much as 1.1% to 147.69 against the dollar, the biggest advance since Feb. 20, on Thursday morning in Tokyo. Trump imposed tariffs on US trading partners across the globe, with Japan facing a 24% rate.

The move comes as investors piled into haven assets, with Treasury futures surging. New Zealand’s 10-year sovereign bond yield fell more than 10 basis points and Australia’s 10-year government bond yield dropped the most since July.

“Stock price futures, including the Nikkei average, are falling, and the yen is being bought up slightly due to risk aversion,” said Takafumi Onodera, first vice-president of the funds and securities Department of Mitsubishi UFJ Trust and Banking Corp in New York. “If the general stock market declines in response to reports that US President Trump will impose a 24% tariff on Japan, the yen may rise to the 145 yen per dollar level.”

Treasury Secretary Scott Bessent urged US trading partners against taking retaliatory steps. Strategists say that the yen may rally further from here if the situation escalates due to retaliation.

“I’d expect the JPY to keep an upward bias as more trade headlines emerge,” said Carol Kong, a strategist at Commonwealth Bank of Australia. “The next catalyst for further strength in safe haven currencies and weakness in the risk currencies will be retaliation from foreign governments which will attract even higher US tariffs.”

Uploaded by Jason Ng