Dollar Struggles Amid Trade War Concerns, Yen Gains on Policy Outlook

The U.S. dollar faced headwinds on Thursday as investors grew concerned about the impact of an escalating global trade war on inflation and economic growth. Meanwhile, the Japanese yen ticked higher, supported by favorable domestic conditions that could lead to further policy tightening by the Bank of Japan. Market uncertainty over trade tensions and central bank decisions continues to drive currency fluctuations, keeping investors on edge.