The Japanese Yen weakens further against the US Dollar amid rising geopolitical risks and softer-than-expected Japanese GDP data.
The USD/JPY pair climbed to 159.75, approaching the critical 160.00 level, as risk appetite waned due to escalating Middle East tensions. Investors grew cautious after a US-Iran memorandum expired without progress, prompting renewed threats from both sides.
Japan’s second-quarter GDP growth slowed to 0.3%, below expectations, raising doubts about the Bank of Japan’s tightening timeline. The prior quarter’s growth stood at 0.5%, signaling a deceleration in economic momentum.
Analysts note the US Dollar’s firm tone but expect near-term consolidation. The risk-off environment continues to support the greenback, while the Yen faces pressure from weak domestic data.