Japanese Yen Weakens Against US Dollar Amid Weaker GDP Figures

The Japanese Yen weakened against the US Dollar on Wednesday, as weaker-than-expected GDP figures from Japan cast doubts on the Bank of Japan's tightening plans.

The USD/JPY pair returned to levels above 159.00 during the European session after hitting daily lows around 158.85.

Economic growth in Japan slowed down to a 0.3% pace in the second quarter, against expectations of a steady 0.5% reading, according to data released by the Japanese Cabinet Office earlier on Monday.

The yearly GDP growth decelerated to 1.1% year-over-year from 1.8% in the previous quarter, against expectations of an uptick to 2%, said strategists at Brown Brothers Harriman.