The Dollar rose to its highest level against the Yen in over two weeks on Wednesday, following US President Donald Trump’s promise of additional trade-related announcements after imposing 25% tariffs on Japan and other trading partners.

On Tuesday, the greenback gained ground against major currencies in response to Trump’s latest tariff threats, set to take effect on 1^st August, although he later indicated a willingness to consider extensions if countries put forward proposals.

Trump also mentioned on social media that announcements involving “a minimum of 7 countries having to do with trade” would be made on Wednesday, without providing further details.

He also warned of a potential 50% tariff on imported copper and indicated that he would soon implement long-threatened tariffs on semiconductors and pharmaceuticals, Reuters reports.

Despite the recent rally, the dollar index, which tracks the greenback against six major currencies, remains over 6% lower since 2^nd April, when Trump announced his comprehensive “Liberation Day” reciprocal tariffs.

Those initial tariffs triggered market sell-offs but were largely postponed to allow time for negotiating bilateral trade agreements.

“The market's second take on the reciprocal tariff announcements was actually Dollar negative on the view that there was as much harm, or more harm, going to be inflicted on the US from these actions as elsewhere,” stated Ray Attrill, head of FX strategy at the National Australia Bank.

“It makes markets reluctant to take a kind of positional view as to how this may play out, given uncertainty still reigns,” he added.

The Dollar strengthened by 0.1% to 146.75 Yen after briefly reaching 147.19, marking a 1.5% gain for the week, the greenback’s largest weekly increase since mid-December.

Among major US trading partners, export-reliant Japan remains the furthest from reaching a trade agreement, and its currency has suffered significant losses as the deadline approaches.

Several rounds of negotiations have yet to produce a breakthrough, while Japanese policymakers are increasingly focused on an important upcoming election.

Speculation that opposition parties may gain seats in the upper house and advocate for increased fiscal stimulus has put downward pressure on Japanese government bonds (JGBs) this week, leading to a rise in long-term yields.

“Talks appear to be stalled over Japan's rice market protections and it's hard to see the Japanese bending on this one. The (currency) pair's rise was also supported by a fifth day of gains in US yields and a sharp rise in JGB yields on fiscal concerns ahead of Japanese elections on July 20,” said IG analyst Tony Sycamore.

Elsewhere, the Euro remained steady at $1.171 as markets cautiously considered the possibility that the European Union might avoid receiving a tariff notice and could secure exemptions from the US baseline 10% tariff, according to EU sources speaking to Reuters.

The Dollar index held steady at 97.60, while the British Pound edged slightly higher to $1.36.

Meanwhile, the New Zealand Dollar rose 0.1% to $0.60 after the local central bank kept its benchmark interest rate unchanged, as anticipated, citing ongoing near-term inflation risks.