Japan: Yen Extends Fall Ahead of BOJ Decision.

The Japanese yen weakened toward 145 per dollar on Tuesday, marking its third consecutive session of losses as investors looked ahead to the Bank of Japan’s upcoming policy decision. The central bank is widely expected to keep interest rates unchanged while it monitors the impact of elevated oil prices and seeks clarity on US trade policy. Adding to the yen’s pressure, Japanese media reported that Prime Minister Shigeru Ishiba and US President Donald Trump failed to reach a tariff agreement during the G7 summit in Canada. Meanwhile, the US dollar strengthened broadly on the back of rising geopolitical and inflationary risks. In the latest developments, Trump called for the full evacuation of Tehran amid continued Israeli airstrikes, reiterating that Iran should have signed his proposed nuclear deal. The conflict has fueled a rally in oil prices, prompting markets to reassess the likelihood of additional Federal Reserve rate cuts this year.