FX.co ★ Yen Weakens on Soft Economic Data Ahead of BOJ Decision

On Wednesday, the Japanese yen weakened to approximately 142.4 per US dollar, marking its second consecutive day of decline due to a series of disappointing economic indicators that negatively affected market sentiment. March data revealed that industrial production fell more than anticipated, while the growth in retail sales also failed to meet expectations. These findings suggest potential challenges for Japan's economic outlook. Focus now shifts to the Bank of Japan's imminent policy decision, where it is largely anticipated that the central bank will maintain interest rates at 0.5%. Policymakers are likely to adopt a cautious approach as they assess the possible ramifications of newly implemented US tariffs on Japan's export-dependent economy. Furthermore, US Treasury Secretary Scott Bessent announced on Tuesday that the Trump administration engaged in "substantial talks" with Japan about a potential trade agreement, providing a glimmer of hope for alleviating bilateral tensions.