US Dollar Hits Lowest Level Against Yen Since October

In a dramatic turn of events, the US dollar experienced a sharp decline against the yen on Wednesday, reaching its weakest point since October 2. This significant drop was triggered by an announcement from China's Finance Ministry regarding an increase in tariffs on US imports, escalating from 34% to a staggering 84%, effective April 10. This move comes as a direct response to new tariffs imposed by the US.

Global Markets React to Escalating Trade Tensions

The announcement has not only heightened tensions between the world's two largest economies but also sent shockwaves through global markets. The unsettling news led to a spike in bond yields and caused US premarket trading and oil prices to shake, reflecting the immediate impact of these developments on the global financial landscape.

By 8:15 am ET, the dollar was trading 1.29% lower against the yen, with the exchange rate standing at 144.32537, marking a notable moment in currency markets.