The Japanese Yen was slightly weaker against the dollar on Wednesday after the announcement of a 15% trade tariff on Japanese imports to the US.
The Yen had rallied against the dollar in the initial market reaction to the trade deal, but was quickly sold into by traders.
15% tariffs are significantly better than the previously touted 25% rate, but the muted reaction reflects the damage to trade between the US and Japan.
Stocks displayed the most enthusiasm for the trade deal, the Nikkei rallying around 3% overnight.
“Asian markets have rallied overnight, after the announcement of a trade deal between the US and Japan. The deal sees a 15% tariff imposed on all Japanese exports to the US. Traders reacted positively to the news, because President Trump had previously been threatening a 25% tariff,” said Steve Clayton, head of equity funds, Hargreaves Lansdown.
USD/JPY was 0.1% higher at the time of writing after the Yen strengthened against the dollar in the run-up to the deal.
The trade deal comes amid political uncertainties in Japan, with Prime Minister Ishiba suffering an election loss but vowing to remain in post.