Forex – Yen Rises on Safe-Haven Demand, Mexican Peso Slump on Tariff News

© Reuters. – The Japanese yen rose on Friday in Asia amid safe-haven demand, while the Mexican Peso slumped amid news of unexpected tariffs imposed on Mexican goods.

The pair was up 2.2% to 19.5583 by 12:50 AM ET (04:20 GMT).

The Mexican peso is now near three-month lows against the dollar after U.S. President Donald Trump unexpected said the U.S. will slap a 5% tariff on all goods coming from Mexico. The tariff will kick in from June 10 and will last until illegal immigration is stopped, Trump said.

The pair rose 0.1% to 6.9083 after data showed China’s official for the month of May fell to 49.4 from 50.1 in April. Analysts previously expected the figure to drop to 49.9 in May.

A reading below 50 indicates contraction.

The for May was 54.3, in line with expectations and unchanged from April.

Meanwhile, the Japanese yen received some safe-haven bids today following reports that China has halted purchases of American soybeans amid disagreements over trade.

Former governor of the People’s Bank of China Dai Xianglong’s comments that said he expected no major trade breakthrough when Chinese President Xi Jinping meets with his U.S. counterpart Donald Trump next month at the G-20 meeting also dented investors sentiment and boosted the safe-haven yen.

The rise in the yen also came amidst a slew of data releases.

Government data showed the country’s rose 0.6% from the previous month, compared with a 0.2% increase expected by analysts.

Separate data also showed the country’s fell to 2.4% in April, in line with expectations.

rose 0.5% in April from a year earlier, compared with the expected 0.8% increase.

The U.S. dollar, which is also considered as a safe-haven currency, remained little changed at 98.045.

The pair and the pair both edged up 0.1%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.