FX.co ★ Japanese Yen Hits Over 3-Month Low

The Japanese yen declined to nearly 149 per dollar on Wednesday, marking its lowest point since early April. This decline came as the US dollar strengthened following an inflation report that tempered expectations for near-term rate cuts by the Federal Reserve. Domestically, Japanese manufacturers saw a slight improvement in sentiment in July, spurred by a recovery in the semiconductor industry. Nonetheless, apprehension persists regarding the potential effects of US tariffs. Market participants are closely monitoring upcoming trade and inflation data from Japan, which could shed light on the local repercussions of these tariff threats. Additionally, there is growing anticipation surrounding possible fiscal measures ahead of the Upper House election on July 20. Increasing chatter suggests there might be expanded government spending, with speculation of a potential reduction in the consumption tax as officials strive to enhance economic growth.