Ella 
The yen remained weak against the dollar on Monday, near its lowest level since 1986 at 161.28. However, the yen’s downside appeared limited as upbeat Japanese business confidence data boosted sentiment. In addition, expected speculation about imminent intervention by Japanese authorities also provided support for the yen.
Japan’s Tankan large manufacturing index rose to 13 in the second quarter from 11 previously. Meanwhile, the Jibun Bank of Japan’s June manufacturing purchasing managers’ index was slightly revised down to 50 from an initial reading of 50.1, but remained in expansion for the second consecutive month.
The U.S. dollar (USD) depreciated as recent inflation data raised expectations of a 25 basis point rate cut by the Federal Reserve in 2024. The CME FedWatch tool showed that the probability of a 25 basis point rate cut by the Federal Reserve in December rose to nearly 32.0% from 28.7% a week ago.
