BRUSSELS (dpa-AFX) - The Japanese yen weakened against other major currencies in the Asian session on Wednesday, as additional uncertainty increased as a result of media reports that Japanese Prime Minister Shigeru Ishiba may step down as early as this month.
The upbeat market mood is seen as another factor weakening demand for the safe-haven JPY amid less predictions for an early rate hike by the Bank of Japan (BoJ).
Market sentiment improved following global trade developments as markets await potential trade deals between the U.S. and its partners ahead of the August 1 deadline. U.S. President Donald Trump's announcement of a 'massive' trade deal with Japan eased concerns about the tariff war.
U.S. President Donald Trump has threatened nations with an enormous 35% tariff on its imports to the U.S. if a deal is not reached by August 1, with countries forcing themselves to arrive at a 'good deal.'
Trump has threatened to hit most of the EU bloc's exports with 30% tariffs, leaders are focused to avert the enormous levies. Reports suggest that the bloc is planning to retaliate if the ongoing talks fail.
In the Asian trading today, the yen fell to 147.21 against the U.S. dollar, from a recent near 2-week high of 146.20. The yen may test support around the 149.00 region.
Against the euro, the pound and the Swiss franc, the yen edged down to 172.74, 199.01 and 185.44 from recent highs of 172.27, 198.44 and 184.90, respectively. If the yen extends its downtrend, it is likely to find support around 174.00 against the euro, 200.00 against the pound and 187.00 against the franc.
Looking ahead, Canada new housing price index for June, U.S. MBA mortgage approvals data, U.S. existing home sales for June, U.S. EIA crude oil data and Eurozone flash consumer confidence for July are slated for release in the New York session.
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