Published by Global Banking & Finance Review®
Posted on February 24, 2026
3 min readLast updated: April 2, 2026
Add as preferred source on GoogleAsia’s first session after holidays finds the dollar subdued as tariff uncertainty returns post–Supreme Court ruling. Yen eases on U.S. rate-check reports, while the euro firms as traders assess the Fed and geopolitics.
By Karen Brettell
NEW YORK, Feb 24 (Reuters) - The Japanese yen slipped on Tuesday after a news report that Japanese Prime Minister Sanae Takaichi had conveyed her reservations about further interest rate hikes to Bank of Japan Governor Kazuo Ueda, raising doubts over the next rate increase.
The report, if true, signals potential friction over monetary policy that could complicate the BOJ's timetable as coordination with the newly strengthened administration becomes more delicate.
Before the report, a majority of economists polled by Reuters had expected the BOJ to raise rates to 1% by end-June, while markets had priced in a roughly 70% chance of a hike by April.
Traders are now pricing in 51% odds of a hike in April, and a 65% chance of a hike by June.
“This is definitely the fear that I think has been weighing on markets,” said Eric Theoret, currency strategist at Scotiabank in Toronto. “We're getting news that there may have been, if not pressure, at least a communication of disagreement.”
The Japanese yen weakened 0.92% to 156.09 per dollar.
The dollar index, which measures it against a basket of currencies including the yen and the euro,rose 0.26% to 97.94, with the euro down 0.1% at $1.1772.
Traders are also focused on how the Trump administration plans to implement new tariffs, after the U.S. Supreme Court on Friday struck down levies introduced under an emergency law.
The United States imposed a new tariff from Tuesday of 10% on all goods not covered by exemptions, the U.S. Customs and Border Protection said. A White House official said the administration is working to raise the rate to the 15% level Trump promised on Saturday.
The new levies are grounded in an untested law, known as Section 122, that allows tariffs up to 15% but requires congressional approval to extend them after 150 days. Trump said he would use the 150-day period to work on issuing other "legally permissible" tariffs.
“It's been a pretty remarkably muted reaction to all of the tariff narrative,” said Theoret. “It's the major trading partners and their response that will maybe be a bit more of an unknown."
Trump on Monday warned countries against backing away from recently negotiated trade deals with the U.S., saying that if they did, he would hit them with much higher duties under different trade laws.
He may offer new insights on his tariff plans when he delivers his State of the Union speech later on Tuesday.
China's offshore yuan rose to its strongest against the dollar since April 2023 on bets that the ruling will bolster Chinese exports.
The currency was last trading 0.12% higher at 6.881 per dollar.
Traders are also focused on rising tensions between the United States and Iran.
Trump's first option with Tehran is always diplomacy but he is willing to use lethal force if necessary, his spokeswoman said on Tuesday, as his top diplomat prepared to brief top congressional leaders on Iran later in the day.
In cryptocurrencies, bitcoin fell 1.49% to $63,611.
(Reporting by Karen Brettell; Additional reporting by Niket Nishant and Rocky Swift)
The piece analyzes how renewed tariff uncertainty—following a Supreme Court curb on Trump’s emergency tariffs—left the U.S. dollar subdued as Asian markets resumed trading.
The yen softened slightly amid reports of U.S.-led market ‘rate checks,’ while the euro inched higher against the dollar as traders reassessed risk and trade prospects.
Markets are focused on potential new tariff measures, any signs of FX intervention around the yen, and upcoming U.S. economic data that could influence the Fed’s rate path.
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