The Japanese yen weakened past 156.5 per dollar on Wednesday, extending losses for a second straight session as rising geopolitical tensions with China weighed on sentiment.
Beijing imposed export controls on military-use products to Japan following remarks made by Prime Minister Sanae Takaichi on Taiwan last year.
The measures cover a range of items, including electronics, sensors, and technologies used in shipping and aerospace.
Despite these developments, broader geopolitical risks, including the recent US intervention in Venezuela, appeared to have limited impact on currency markets.
On the domestic front, investors continue to bet that the Bank of Japan will raise interest rates further this year after Governor Kazuo Ueda reiterated that policy adjustments would depend on economic and price developments in line with the central bank’s forecasts.
He also expressed confidence that the economy would sustain a virtuous cycle of rising wages and prices.
AloJapan.com