Currency Fluctuations and Trade Dynamics

This chapter explores the recent depreciation of the Japanese yen against the dollar, comparing it with the Chinese yuan's performance amidst sluggish international trade negotiations, particularly concerning Vietnam. The discussion highlights the complex interactions between tariff announcements and market responses, emphasizing the behavior of retail versus institutional investors during periods of volatility. Additionally, it raises critical questions about government policies on tariffs and their broader implications for international relations and market stability.