The Japanese yen hovered around 147.6 per dollar on Tuesday, near its lowest level in two months, as persistent trade-related tensions weighed on sentiment. Despite Washington’s plans to impose 25% tariffs on Japanese exports, Tokyo has not indicated any intention to respond with reciprocal measures. However, trade negotiations between the two countries appear to have stalled. A Japanese official warned that the nation should brace for potential economic fallout if the tariffs are implemented. Investors are now focused on upcoming trade and inflation data from Japan, which may shed light on the domestic impact of US tariff threats. Meanwhile, markets are also awaiting key US consumer inflation figures, which could influence the Federal Reserve’s policy outlook in the months ahead.