On Tuesday, the Japanese yen dipped to approximately 142.3 against the US dollar, following a notable gain of over 1% in the previous session. This movement occurs as investors continue to assess the uncertainties surrounding global trade. The dollar experienced a broad weakening on Monday due to the stagnant progress in US-China trade relations. China refuted claims of ongoing trade discussions with Washington, contradicting statements made by President Trump. Furthermore, US Treasury Secretary Scott Bessent emphasized that it remains incumbent upon China to reduce trade tensions, while also suggesting that a trade agreement with India might be on the horizon.
Concurrently, Japanese officials have remained reticent regarding the status of trade negotiations with the United States. However, Finance Minister Katsunobu Kato alluded to the possibility of currency issues being addressed within the broader framework of trade discussions. As the week progresses, market participants are keenly anticipating the forthcoming Bank of Japan monetary policy meeting. It is widely anticipated that the central bank will maintain its policy rate at a steady 0.5%, as it evaluates the potential repercussions of US-imposed tariffs on Japan's export-centric economy.
