While the announcement was cause for optimism ahead of Aug. 1, analysts remained concerned about the steep tariffs still looming for key trading partners such as Brazil and the EU.

Japan's yen was climbing against the U.S. dollar Monday after Prime Minister Shigeru Ishiba vowed to stay on, even though his ruling coalition just lost its majority in the country's upper house. The

Investors will be keeping a close watch on the People’s Bank of China’s decision on its 1-year and 5-year loan prime rates for July, expected later in the day.

The downside risk to the USD/JPY exchange rate has become greater since Japan's election and traders should short the cross with a target of 142. That's according to a new note by a team of forex strategists at Nomura led by Yusuke Miyairi.

The yen may be volatile against the dollar as a setback for Prime Minister Shigeru Ishiba’s ruling coalition in the upper house election casts doubt over the nation’s policy direction, dimming the appeal of Japanese assets,

Through its careful development of the digital yen, Japan may offer a path to adopt central bank digital currencies without compromising financial stability or civil liberties.

The Indian rupee is poised to open slightly higher on Tuesday, supported by a retreat in the dollar index that was largely triggered by a post-election rally in the Japanese yen.

EUR/JPY trades on a positive note near 172.40 in Wednesday’s Asian session. Japan’s Ishiba is reported to step down by the end of August, weighing on the Japanese Yen. The ECB is expected to hold rates at the July meeting on Thursday.