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Heat rising over trade, inflation cooling

While Japan has close economic ties to both the US and China, it shouldn’t be too badly affected if the trade dispute between them heats up. Perhaps the main concern is that a trade war would cause the yen to strengthen as a safe haven. But the currency’s lack of response to the escalation of tariff threats this week suggests the situation would have to worsen considerably for there to be any major, lasting impact on the exchange rate.

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