The Japanese yen fell on Tuesday, extending losses from the previous session as mounting political uncertainty dampened investor sentiment. On Friday, Japan’s Komeito party announced its withdrawal from the ruling coalition led by the Liberal Democratic Party, deepening doubts over Sanae Takaichi’s policy agenda and complicating her path to the premiership. Meanwhile, Finance Minister Katsunobu Kato said Japan’s current situation differs from the Abenomics era of expansionary policy, noting that inflation, rather than deflation, is now the main concern. He also warned against one-sided and rapid currency movements, emphasizing that exchange rates should reflect economic fundamentals. Externally, the yen faced additional pressure from a stronger dollar amid easing US-China trade tensions, with Presidents Donald Trump and Xi Jinping expected to meet later this month.