Japanese Yen Strengthens as Dollar Languishes

The Japanese yen strengthened toward 144 per dollar on Monday, approaching two-week highs as the US dollar extended its decline amid a more dovish Federal Reserve outlook, mounting fiscal concerns, and persistent trade uncertainty. Markets are bracing for key US jobs data this week, which could reveal signs of labor market softness and bolster expectations for a Fed rate cut in July. Domestically, Japanese industrial production rose less than expected in May, as elevated US tariffs continued to weigh on the outlook. The 25% tariff on Japanese car imports remains a major sticking point in trade talks between Washington and Tokyo, with little progress reported. Looking ahead, investors are focused on the Bank of Japan’s upcoming quarterly Tankan survey on Tuesday for fresh insights into corporate sentiment and the broader economic landscape.