FX.co ★ Japanese Yen Rises for 3rd Straight Session

The Japanese yen strengthened to approximately 143 per dollar on Tuesday, marking its third consecutive session of gains as the US dollar was kept in check by ongoing global trade uncertainties. US President Donald Trump indicated that he has no intentions of engaging in discussions with Chinese President Xi Jinping this week. However, he did mention the potential for lowering the current 145% tariff rate on Chinese imports, introducing a layer of complexity to the existing tense trade relations. Investors are closely watching the progress of recent US-Japan bilateral trade talks, with Tokyo aiming to secure an agreement by June. In terms of monetary policy, the Bank of Japan maintained its benchmark interest rate at 0.5% last week, as anticipated. Nonetheless, the central bank revised its growth and inflation projections downward, affirming market beliefs that interest rate increases are unlikely in the near future. Trading activity was subdued on Tuesday due to a public holiday in Japan.