Yen Reaches ¥155 per Dollar; Trump Announces 25% Tariffs on EU Vehicles
Japan's government issued strong warnings and reportedly intervened to support the yen, which moved from above ¥160 to ¥155 against the dollar before settling above ¥157. President Trump announced an increase in tariffs on EU cars and trucks to 25% next week. Goldman Sachs strategist Tim Moe discussed the global energy shock's impact on Asian markets in a recent interview.
nippon.comJapan's yen strengthened sharply following reports of government intervention and official warnings, moving from above ¥160 to the dollar into the ¥155-to-the-dollar range after decisive jawboning on Thursday. Multiple news outlets reported that the Japanese government sold dollars and bought yen to prop up the currency.
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The yen then settled back above ¥157 to the dollar on Friday as the market sought clarity.
Japan's top FX diplomat Mimura delivered a statement called Japan's 'final evacuation warning' to markets on Thursday afternoon local time. The Japanese government refused to confirm whether it sought to prop up the yen, according to the Japan Times. The government made bold statements without confirming market actions on May 1, 2026.
Japan entered a long holiday weekend on May 1, 2026. The yen was in ¥150-to-the-dollar territory after reports of intervention, the Japan Times reported. Traders braced for another round amid the guessing game continuing into the holiday period.
Multiple reports indicated aggressive dollar sales and yen purchases by the government. In related economic developments, President Trump stated he is increasing tariffs on EU cars and trucks to 25% next week. This announcement came in a video interview that aired alongside discussions of global market impacts.
Tim Moe, chief APAC equity strategist at Goldman Sachs, joined 'Money Movers' to discuss the global energy shock's effects on Asian markets, Japan's yen intervention, and related topics. The video interview with Tim Moe aired 2 hours ago from the current date of 2026-05-03, according to CNBC. Moe described why South Asia is more affected by the supply shock than North Asia in the discussion.
