Japanese Yen futures fell to log a 7th straight weekly loss.

Japanese Yen futures experienced a minor daily bounce during a quiet trading session, yet the currency remains on track to register a seventh consecutive weekly decline. The primary structural headwind pressuring the yen continues to be the substantial interest rate differential between the U.S. and Japan. Even with the Bank of Japan raising its policy rate to 1% in mid-June, the wide gap relative to Federal Reserve interest rates keeps yen carry trades highly attractive to market participants. While rising wholesale prices related to Middle East tensions add some domestic tightening pressure, the overall interest rate gap remains a dominant factor. Furthermore, heavy government intervention spending totaling approximately 73 billion dollars between April and May has shown limited long-term impact, leaving the currency under structural pressure as market skepticism grows.