The Japanese Yen fell against the US Dollar during the Asian trading session on Friday on hopes that the nuclear standoff with North Korea might now be abating. Donald Trump, the US President, has shown that he is amenable to meeting Kim Jong Un, the leader of North Korea, sometime in May. An envoy from South Korea reported that both Kim and Trump may be moving toward an accord that could neutralize the threat of a nuclear launch by North Korea.
As reported at 10:49 am (JST) in Tokyo, the USD/JPY was trading at 106.70 Yen, a gain of 0.40%; the pair earlier hit a peak of 106.945 Yen while the session low stands at 106.175 Yen. The EUR/JPY is trading higher at 131.3480 Yen, a gain of 0.3277%; the pair has ranged from a trough of 130.7110 Yen to a peak of 131.5930 Yen in today’s session.
Trade War Compromise Helps Risk Sentiment
Analysts say that the encouraging headlines has improved risk sentiment, especially in the Asian-Pacific region with the Nikkei moving higher and gaining more than 2%. The rhetoric of a US-initiated trade war eased down slightly despite Trump’s imposition of steel and aluminum tariffs. Trump appeared to have softened his stance somewhat with the announcement of exemptions, specifically for Mexico and Canada. Nonetheless, analysts say that that leave the door open for other nations to obtain exemptions, as well.