The Japanese yen fell in Asian trade on Wednesday against a basket of major rivals, extending losses for the second straight session against the US dollar amid a weak sentiment in the market as traders await the results of US President Trumps negotiations with trade partners, including China.

Recent Tokyo data showed increasing inflationary pressures on the Bank of Japan, which boosted the odds of a June interest rate hike by the Bank of Japan.

The Price

The USD/JPY price rose over 0.2% today to 144.29 yen per dollar, with a session-low at 143.67.

The yen lost 0.95% on Tuesday, the first loss in four days as the US attempted to calm trade tensions with China, and after strong US job opportunities data.

Trade Developments

The Trump administration specified Wednesday as the deadline for best offers by other countries on the trade deals, and its the same day that the US implemented 50% tariffs on steel and aluminum.

The White House also expects Trump to conduct a phone call with his Chinese counterpart this week after both sides traded accusations of violating the Geneva trade agreement.

US Dollar

The dollar index rose 0.1% on Wednesday against a basket of major rivals.

Recent US data showcased the strength of the labor market unexpectedly, with the Fed relying on such data to decide the path ahead for monetary policies.

Japanese Rates

Earlier data showed consumer prices in Tokyo rose 3.6% y/y in May, the fastest pace since January 2023, and up from 3.4% in April.

Following the data, the odds of a BOJ 0.25% interest rate hike in June rose from 35% to 45%.

Bank of Japan Deputy Governor Shinichi Uchida said the bank will continue to raise interest rates if the economy recovers from the negative impact of US tariffs, however he still cautioned that the economic outlook remains highly uncertain.

Now traders await more Japanese data on inflation, unemployment, and wages to gather additional clues.