Japanese Yen

depreciated past 161.5 per dollar

The Japanese yen depreciated past 161.5 per dollar, sinking to fresh 38-year lows due to stark interest rate differentials between Japan and the US. The lack of urgency from the Bank of Japan to normalize monetary settings also weighed on the currency, although there is growing speculation that the BOJ could hike rates at its next policy meeting in late July. A weak yen pushes up import costs, adding to inflationary pressures and hurting household consumption. wnturn from a previous reading of 1.8% as a revision of public works spending turned much weaker.Meanwhile, finance minister Shunichi Suzuki reiterated on Tuesday that the government remains vigilant to currency moves, stating that foreign exchange levels reflect a complex mix of factors. On the data front, a second revision showed that Japan’s economy contracted at an annualized rate of 2.9% in the January-March quarter, a sharper do