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26.08.202502:03:02UTC+00Japanese Yen Gains on Dollar Weakness

The Japanese yen edged closer to 147 against the dollar on Tuesday, rebounding from the losses sustained in the previous session. This resurgence occurred as the US dollar faced downward pressure following President Donald Trump's announcement about the dismissal of Federal Reserve Governor Lisa Cook due to allegations of mortgage fraud. This development has heightened concerns regarding the Fed's independence and its capability to implement monetary policy without political interference. Domestically, Bank of Japan Governor Kazuo Ueda expressed optimism on Saturday about rising wage trends in Japan amid a tightening labor market, suggesting that conditions might soon warrant another interest rate increase. At its meeting in July, the Bank of Japan maintained its current interest rates but revised its inflation forecasts upwards and painted a more hopeful economic picture. Market participants are also anticipating several significant Japanese economic reports later this week, including data on industrial production, retail sales, and consumer confidence.

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