FX.co ★ Yen Holds Losses Amid US–China Trade Optimism

The Japanese yen maintained its recent downtrend, trading around 144.9 against the US dollar on Wednesday, close to a two-week low. This decline is attributed to optimism surrounding trade negotiations between the United States and China, which has diminished the demand for safe-haven currencies. Reports indicate that both nations have agreed to implement the Geneva consensus, with expectations that Beijing will lift restrictions on rare earth exports while Washington considers easing its advanced technology sales curbs to China. On the domestic front, Japan's producer prices increased by 3.2% year-over-year in May, marking the slowest growth rate in eight months, indicating reduced pressures from input costs. Concurrently, Bank of Japan Governor Kazuo Ueda informed parliament on Tuesday that the central bank is ready to raise interest rates again if there is sufficient assurance that underlying inflation is nearing or stabilizing at the 2% target.