The Japanese yen strengthened by more than 1% against the US dollar amid various market influences, including news related to the Russia-Ukraine conflict, reciprocal tariffs from former President Donald Trump, and recent US economic data. As a result, the Nikkei index experienced a slight decline, marking its first drop in four days, as concerns over a stronger yen prompted selling pressure across multiple stocks. The yen's rise is also attributed to easing fears of excessive inflation in the US, with the yen trading at a rate that reflects a significant response to these economic signals. Additionally, there are expectations for further interest rate hikes in Japan, driven by a 4.8% increase in Japanese wages in December, the fastest growth in nearly three decades, which could influence the Bank of Japan's policy decisions.