The Japanese yen rose in Asian trade on Tuesday on track for the second straight daily profit against the dollar, about to hit four-month highs on mounting odds for a Japanese rate hike in March.

The yen is also boosted by a drop in US 10-year treasury yields to five-month lows as President Donald Trump implemented 25% tariffs on Canada and Mexico.

The Price

The USD/JPY pair fell 0.6% today to 148.52 yen per dollar, with a session-high at 149.62.

The yen rose 0.75% on Monday, resuming gains after three days of losses, and approaching a four-month high at 148.56.

Japanese Rates

BOJ Deputy Governor Shinichi Uchida said on Friday the bank will continue to reduce its purchases of government bonds despite the recent rise in yields, asserting its massive holdings of bonds still act as a massive stimulus to the economy.

Uchida reiterated the BOJ’s readiness to hike interest rates if economic developments and prices went as expected

The odds of a BOJ interest rate hike in March now stand at 85%.

US Yields

US 10-year treasury yields fell 1.1% today on track for the third loss in a row, plumbing a five-month trough at 4.115% and hurting the dollar’s standing.

The decline comess asd investors prepared for Trump’s 25% tariffs, which officially went into action today against Canada and Mexico.

Otherwise, according to the Fedwatch tool, the odds of a 0.25% Fed interest rate cut in March stood at 9%.

A smaller gap between US and Japanese long-term treasury yields would boost the standing of Japanese bonds and underpin the yen.

US stock indices declined on Monday as markets await the implementation of US tariffs on Mexico and Canada.

US President Donald Trump announced on the Truth Social platform that tariffs on Canadian and Mexican imports will officially be enforced starting tomorrow, Tuesday. 

On trading, Dow Jones fell 0.1% as of 16:11 GMT, or 32 points to 43,809 points, while S&P 500 shed 0.1%, or 10 points to 5944 points, as NASDAQ gave up 0.5%, or 97 points to 18,750 points. 

International benchmark Brent rose in European trade on Monday away from recent 11-week lows on short-covering, and after strong Chinese industrial data.

Prices are also boosted by an improving risk appetite following calmer remarks from Trump officials on upcoming tariffs on Mexico and Canada.

The Price

Brent rose 0.75% today to $73.63 a barrel, with a session-low at $72.38.

Brent closed down 0.4% on Friday, resuming losses and rebounding from 11-week lows at $71.96.

Oil prices lost on average 1% last week, the sixth weekly loss in a row on concerns about a global supply glut. 

Chinese Demand

Earlier Beijing data showed China’s manufacturing PMI rose to 50.8 in February from 50.1 in January, beating estimates of 50.4, and boosting hopes for higher demand on metals. 

Now investors await the Chinese parliament’s annual convention in a few days, which would delineate various fiscal measures to support the economy.

Trump’s Tariffs 

The US Trade Secretary Howard Lutnik said on Sunday that tariffs on Canada and Mexico will be implemented on Tuesday but President Trump will decide whether he’ll commit to the 25% rate.

Bitcoin fell on Monday for the first time in three days after marking the best daily profit in 2025 on Sunday following US President Donald Trump’s statements on the strategic crypto reserve. 

Major companies continue to expand their holdings of the cryptocurrency, which boosts its institutional value and long-term confidence. 

The Price

Bitcoin fell 3.3% at Bitstamp today to $91,135, with a session-high at $94,422.

On Sunday, bitcoin spiked 9.6%, the largest daily profit since November 2024, away from three-month lows after Trump’s supportive remarks.

Crypto Market Value 

The market value of cryptocurrencies fell $140 billion on Monday to a total of $3115 trillion.

US Strategic Reserve

US President Donald Trump said on the Truth Social platform that his executive order issued in January on crypto assets would create a crypto reserve that includes bitcoin, ethereum, ripple, solana, and cardano.

The statement catapulted public confidence in the crypto market once more and ended a long selling cycle.

MetaPlanet

Japan’s MetaPlanet corporation continued to expand its holdings of bitcoin, adding 156 more units this week at a value of $13.4 million, with an average price of $85,890, with the company’s total holdings rising to 2391 units valued at $196.2 million.

This mirrors US Microstrategy’s crypto hoarding strategy, and shows increasing institutional confidence in bitcoin as a strategic reserve.