FX.co ★ Japanese Yen Weakens for Third Session

The yen depreciated beyond the 148-per-dollar mark on Tuesday, continuing its downward trend for the third successive session. This movement is attributed to enhanced global trade prospects, which have led to a decreased demand for the yen as a safe-haven currency. The extension of the US-China trade truce by an additional 90 days has further alleviated tensions, allowing for more time for negotiators to finalize a deal. Domestically, investors are contemplating the Bank of Japan's policy outlook, noting that board members remain divided concerning the timing and pace of future interest rate increments. A faction within the board prefers maintaining an accommodative policy stance given the prevailing uncertainty regarding the realization of the bank’s economic projections. Looking ahead, the market's focus is set on upcoming key Japanese data releases, such as the second quarter GDP, the Reuters Tankan survey, producer prices, and machine tool orders, which are expected to provide further insights.