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02.09.202503:00:48UTC+00Japanese Yen Slips as Wage Data Eyed

The Japanese yen declined to over 147.5 per dollar on Tuesday, approaching a one-week low as investors anticipated upcoming wage data that could influence domestic monetary policy. The market remains uncertain regarding the timing and pace of potential interest rate hikes by the Bank of Japan, especially amid ongoing discussions concerning tariffs. However, Bank of Japan Governor Kazuo Ueda has recently indicated the likelihood of further wage increases in Japan's tight labor market, bolstering expectations for additional monetary tightening. Investors continue to speculate that the Bank of Japan may implement a rate hike before the end of the year, supported by robust wage growth, persistent inflation, and an improved economic outlook. Additionally, externally, the yen faced pressure from a modest recovery in the dollar, spurred by upcoming significant US labor market reports that could influence the Federal Reserve's policy decisions.

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