FX.co ★ Japanese Yen Hovers Near 2-Month Low

The Japanese yen lingered around 147.6 per dollar on Tuesday, closely approaching its lowest point in two months, as ongoing trade tensions continued to affect market sentiment. Despite the United States planning to impose 25% tariffs on Japanese exports, Japan has shown no signs of retaliatory measures. Nevertheless, trade discussions between the two nations seem to have reached a standstill. A Japanese government official has cautioned that the country should prepare for possible economic repercussions if these tariffs are enforced. Investors are now turning their attention to upcoming trade and inflation data from Japan, which could provide insights into the domestic consequences of the US tariff threats. Simultaneously, markets are anticipating key US consumer inflation data, which may impact the Federal Reserve’s policy decisions in the near future.