FX.co ★ Japanese Yen Weakens as Haven Demand Eases

On Tuesday, the Japanese yen weakened to approximately 145 per dollar, hitting a nearly two-week low. This occurred as positive sentiment regarding US-China trade talks reduced the demand for safe-haven currencies. Officials from both countries convened in London on Monday to discuss issues related to rare earth shipments and the possible relaxation of export restrictions, with further discussions slated for Tuesday. Domestically, revised figures indicated that Japan's economy remained stagnant in the first quarter, an improvement from the preliminary estimate of a 0.2% contraction. However, this still represents a significant slowdown from the 0.6% growth seen in the previous quarter. Meanwhile, Bank of Japan Governor Kazuo Ueda reiterated last week that the central bank is prepared to raise interest rates should economic and inflation forecasts be achieved, thereby bolstering expectations of a gradual transition away from its extremely accommodative monetary policy.