USD surges on 25% tariffs to Japan, South Korea - safe haven flows

The US dollar has strengthened sharply following announcements of 25% universal tariffs on Japan and South Korea, two key US allies. Markets reacted swiftly with risk-off positioning, driving USD/JPY and USD/KRW higher while US equity futures declined 0.8% in pre-market trading. Gold prices jumped 1.2% to $2,435/oz as investors sought traditional safe havens amid escalating trade tensions. The tariff letters, first of an expected 12 to be delivered to US trading partners today, mark a significant escalation in protectionist policies. Asian currencies broadly weakened, with the Korean won falling 2.1% and the Japanese yen declining 0.9% despite its typical safe-haven status. Technical indicators show USD/JPY breaking above 151.50 resistance, targeting 152.20, while broader dollar strength suggests continued upward momentum. Traders should monitor further tariff announcements which could amplify currency volatility and strengthen the dollar's haven appeal.