FX.co ★ Japanese Yen Weakens as Tariff Tensions Deepen

The Japanese yen weakened past 147 to the dollar on Wednesday, marking its third consecutive session of declines amidst tense trade negotiations between the US and Japan, with particular contention regarding Japan's protections on its rice market. This depreciation followed US President Donald Trump's declaration of a 25% tariff on Japanese goods, slated to begin on August 1. Trump made it clear that there would be no alterations or deferments to these tariffs, which affect a total of 14 countries. Japanese Prime Minister Shigeru Ishiba expressed that these measures were "truly regrettable," yet he reiterated Japan’s dedication to continued dialogue with Washington to reach a mutually agreeable solution. In parallel, Bank of Japan board member Junko Koeda highlighted the central bank's vigilance over potential secondary impacts on core inflation, especially concerning rising food prices, including rice.