FX.co ★ Japanese Yen Weakens Further

The Japanese yen fell past 144.5 against the dollar on Wednesday, marking its third consecutive loss as investors processed recent statements from key officials and developments in the bond market. Bank of Japan Governor Kazuo Ueda highlighted that ongoing trade negotiations with the United States are adding to a notably uncertain economic outlook. He has restated the central bank’s readiness to modify monetary policy if necessary to achieve inflation targets. Finance Minister Katsunobu Kato also remarked that government officials are closely observing the bond market conditions. On Tuesday, both the yen and Japanese government bond yields saw a steep decline following news that the Ministry of Finance is considering reducing the issuance of super-long-term bonds. This strategy is perceived as an attempt to control rising yields after a disappointing auction of 20-year bonds last week, which recorded the weakest demand in over ten years. Now, investors are turning their focus to the forthcoming 40-year bond sale.