Japanese yen extends decline

The Japanese yen fell toward 157 per dollar on Thursday, marking a third consecutive session of losses as a stronger dollar and rising geopolitical risks pressured the currency.

The greenback strengthened broadly against major peers, with mixed US economic data providing little guidance on the Federal Reserve’s policy outlook.

Investors also weighed the potential impact of heightened tensions between Japan and China after Beijing imposed export controls on military-use products to Japan.

On the domestic front, real wages in Japan fell 2.8% in November as inflation far outpaced wage growth for the month, challenging the Bank of Japan’s plans for further tightening.

Earlier this week, Governor Kazuo Ueda reiterated that the central bank would continue raising interest rates if economic and price developments align with forecasts.