Yen Holds Gains as Dollar Retreats on Geopolitical Easing and ‘Sell America’ Trade

The dollar extended its decline on Monday, driven by a combination of easing geopolitical tensions and a resurgence of the ‘sell America’ trade that was prevalent during past trade wars. Growing skepticism over US policy direction has further undermined the currency, with investors shifting capital away from dollar-denominated assets.

The Japanese yen has emerged as the main beneficiary, defending its recent gains against the greenback. The move comes amid broader market concerns over coordinated currency dynamics and a reassessment of US economic stewardship.

Traders are now focused on whether the yen can sustain its advance as global risk appetite stabilizes.