Published:May 29, 2025

Yen drops as U.S. judge overturns Trump's tariffs

Margarita Spanou
Written byMargarita Spanou

During Thursday’s Asian trading session, the Japanese yen weakened significantly against major currencies. A U.S. federal court stopped President Trump from enforcing broad retaliatory tariffs on global trading partners, ruling that he had overstepped his emergency powers.

The decision came from a three-judge panel at the Court of International Trade after several lawsuits argued that Trump’s actions were destabilizing U.S. trade policy. The court ruled that the tariffs were “illegal for everyone,” ordered them canceled, and permanently blocked their implementation.

Democratic-led U.S. states claimed that the president had unlawfully used emergency measures to introduce his so-called “Liberation Day” tariffs. Trump has already appealed this ruling.

In Asia today, the safe-haven yen reached new two‐week lows, trading at 164.22 per euro and 196.32 per pound, compared to yesterday’s closing rates of 163.64 and 195.68. Experts suggest that if the downtrend continues, support levels may be found around 165.00 per euro and 197.00 per pound.

Against the U.S. dollar and the Australian dollar, the yen slid to two‐week lows of 146.28 and 93.88 respectively, down from Wednesday’s closings of 145.72 and 93.59. Support might be tested near 149.00 for the dollar and 95.00 for the Australian.

The yen also fell to 175.30 against the Swiss franc, slightly below Wednesday’s 174.99, with further support expected near 176.00.

For the New Zealand and Canadian dollars, the yen dropped to two‐week lows of 87.01 and 105.57 respectively, compared to previous closes of 86.78 and 105.20. The next support targets are estimated at around 88.00 for the New Zealand dollar and 106.00 for the Canadian dollar.

Looking ahead, several key economic reports are scheduled for release during the New York session, including Canada’s Q1 current account data, March average weekly earnings, U.S. Q1 GDP growth figures, U.S. weekly jobless claims, Q1 U.S. core PCE price data, April U.S. pending home sales, and EIA crude oil data.