The Japanese yen weakened toward 149 per dollar on Wednesday, its lowest level since early April, as the US dollar gained strength following an inflation report that reduced expectations for imminent Federal Reserve rate cuts.
On the domestic front, sentiment among Japanese manufacturers improved slightly in July, supported by a rebound in the semiconductor sector.
However, concerns linger over the potential impact of US tariffs.
Markets are now turning attention to upcoming trade and inflation data from Japan, which may offer further insight into the local fallout from tariff threats.
Meanwhile, anticipation is building around possible fiscal stimulus ahead of the Upper House election on July 20.
Expectations are rising for expanded government spending, with speculation swirling around a potential consumption tax cut as policymakers aim to bolster economic momentum.
AloJapan.com