Yen Falls As U.S. Court Blocks Trump's Tariffs

(RTTNews) - The Japanese yen weakened against other major currencies in the Asian session on Thursday, after a U.S. federal court blocked U.S. President Donald Trump's attempt to impose sweeping reciprocal tariffs against its global trading partners under emergency powers, saying he exceeded his authority.

The three-judge panel at the Court of International Trade ruled after multiple lawsuits claimed Trump exceeded his authority and destabilized trade policy. The court declared the tariffs "unlawful to all," not just the five US businesses that filed the lawsuit and ordered the tariffs to be vacated and permanently blocked.

Democratic-led U.S. states argued Trump had illegally invoked an emergency law to justify his "Liberation Day" tariffs. Trump has appealed the ruling.

In the Asian trading today, the safe-haven yen fell to more than 2-week lows of 164.22 against the euro and 196.32 against the pound, from yesterday's closing quotes of 163.64 and 195.68, respectively. If the yen extends its downtrend, it is likely to find support around 165.00 against the euro and 197.00 against the pound.

Against the U.S. and the Australia dollars, the yen slid to 2-week lows of 146.28 and 93.88 from Wednesday's closing quotes of 145.72 and 93.59, respectively. The yen may test support near 149.00 against the greenback and 95.00 against the aussie.

The yen dropped to 175.30 against the Swiss franc, from Wednesday's closing value of 174.99. On the downside, 176.00 is seen as the next support level for the yen.

Against the New Zealand and the Canadian dollars, the yen slipped to more than 2-week lows of 87.01 and 105.57 from yesterday's closing quotes of 86.78 and 105.20, respectively. The next possible downside target for the yen is seen around 88.00 against the kiwi and 106.00 against the loonie.

Looking ahead, Canada current account data for the first quarter, average weekly earnings for March, U.S. GDP growth rate for the first quarter, U.S. weekly jobless claims data, U.S. core PCE prices data for the first quarter, U.S. pending home sales data for April and U.S. EIA crude oil data are slated for release in the New York session.