FX.co ★ Japanese Yen Extends Fall Ahead of BOJ Decision

The Japanese yen edged closer to 145 against the dollar on Tuesday, marking its third consecutive day of losses as investors anticipated the Bank of Japan's forthcoming policy decision. The central bank is expected to maintain current interest rates while assessing the effects of rising oil prices and seeking clarity on U.S. trade policy. Further adding to the yen's downward pressure, reports from Japanese media indicated that Prime Minister Shigeru Ishiba and U.S. President Donald Trump did not reach a tariff agreement during the G7 summit in Canada. Meanwhile, the U.S. dollar strengthened broadly, driven by escalating geopolitical tensions and inflationary concerns. In recent developments, President Trump called for a comprehensive evacuation of Tehran amid ongoing Israeli airstrikes, reaffirming his belief that Iran should have accepted his proposed nuclear agreement. This conflict has triggered a surge in oil prices, leading markets to reevaluate the potential for additional interest rate cuts by the Federal Reserve this year.