Overview

• At 10 a.m. in Tokyo on July 18, the yen traded at ¥148.58–60 per dollar and ¥172.70–77 per euro, marking a slight uptick from the previous session.
• Fed board members’ upbeat comments on early rate cuts raised expectations of a narrower U.S.–Japan interest rate gap, triggering modest dollar selling and yen buying.
• Japan’s June national consumer price index had only a muted impact on currency moves, according to foreign exchange brokers in Tokyo.
• Market participants have been closely watching the U.S.–Japan yield differential, with reduced expectations of prolonged higher U.S. rates helping the yen regain some ground.
• Earlier in July, U.S. tariffs on Canada, the EU and Mexico weighed on global market sentiment and contributed to the yen’s previous softening.