US President Donald Trump’s renewed call for lower interest rates prompted investors to sell the dollar against the yen in Tokyo on Tuesday. The Japanese currency briefly rose to the 139 level to reach a 7-month high.

There is also speculation in the market that US Treasury Secretary Scott Bessent may favor a weaker dollar when he meets Japanese Finance Minister Kato Katsunobu. Kato is due to visit Washington this week.

Stability of US monetary policy in question

Trump’s call for lower interest rates has raised concerns about the stability of US monetary policy and the overall outlook for the economy.

The Dow Jones Industrial Average briefly shed more than 1,300 points on Monday before closing down by 970 points, or 2.5 percent. The tech-heavy Nasdaq also slid by more than 2.5 percent.

Tokyo shares in flux, gold price soars

Shares in Tokyo are fluctuating in and out of positive territory after opening lower.

While stocks weakened, gold has soared to record levels as Trump’s comments boosted demand for the metal as a safe haven. Some investors are also moving money outside the US.

At the Osaka Exchange, gold futures for delivery in February 2026 topped 15,700 yen per gram, or roughly 110 dollars, the intraday record.

Japanese gold dealer Tanaka Precious Metal Technologies set its retail price for gold at a record-high 17,160 yen, or approximately 120 dollars per gram.

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