Slowing Japan Economy Complicates Yen Defense Strategy

Japan's economic growth has slowed down to 1.1% on an annualized basis in the second quarter, according to a recent Cabinet Office report.

This is weaker than the revised 1.9% pace in the previous quarter and short of economists' forecast for 2% growth.

The slump in capital spending and private consumption has been a major concern, with inflation weighing heavily on consumer purchasing power.

As Japan's prime minister Sanae Takaichi seeks to shore up a currency near a 40-year low, the slowing economic growth complicates his defense strategy for the yen.