Japan: Yen Falls as Trump Imposes 25% Tariff.

The Japanese yen weakened past 146 per dollar on Tuesday, hitting a two-week low after US President Donald Trump announced a 25% tariff on Japanese goods, set to take effect on August 1. While lower than the earlier threat of a 35% levy, the new rate remains significantly higher than the baseline 10% tariff imposed on most countries, adding pressure on Tokyo to reach a trade deal with Washington. Japanese Prime Minister Shigeru Ishiba said Japan will continue negotiations with the US in pursuit of a mutually beneficial agreement. On the domestic front, Japan's current account surplus for May exceeded expectations, offering some support to sentiment. However, earlier data showing weaker-than-expected wage growth has dampened expectations for further interest rate hikes by the Bank of Japan, putting downward pressure on the yen.