The Japanese yen remained steady at approximately 145.2 per dollar on Wednesday, following a decline over the past three sessions. The dip was influenced by several disappointing economic indicators impacting market sentiment. Notably, May saw the first drop in exports in eight months, impacted by US tariffs, while imports decreased beyond expectations. Further concern was raised as April's core machinery orders fell sharply, and manufacturing sentiment weakened in June, pointing to increasing worry over domestic demand.
In terms of policy, the Bank of Japan maintained its interest rates on Tuesday, signaling a measured approach to reducing its balance sheet, thereby reinforcing its cautious stance on rolling back stimulus measures. Governor Kazuo Ueda emphasized that the BOJ is vigilant about economic conditions and global trade developments, leaving the door open for potential future rate increases if necessary. Meanwhile, pressure on the yen increased amid reports that Prime Minister Ishiba and President Donald Trump did not reach a tariff agreement at the G7 summit in Canada.
