FX.co ★ Yen Holds Losses as Strong Dollar Weighs

The Japanese yen steadied around 148.3 per dollar on Tuesday, maintaining its position near recent one-week lows following a significant three-day decline driven by the robust strength of the dollar. This uptick in the greenback comes as recent global trade agreements are viewed as having a particularly positive impact on the US economy. Adding to the pressure, US President Donald Trump reiterated on Monday that countries refusing to negotiate independent trade deals may soon face tariffs ranging from 15% to 20%, a marked increase from the initial 10% rate established in April. Domestically, all eyes are on the Bank of Japan as it prepares to announce its latest policy decisions this week. Although interest rates are anticipated to remain steady in the face of ongoing tariff-related uncertainties, the central bank is expected to adjust its inflation forecast upward in its quarterly report. Concurrently, political tensions persist, amplified by a growing demand for Prime Minister Shigeru Ishiba’s resignation. Nonetheless, Ishiba has reaffirmed his commitment to continue in his role.