Yen Slumps to 3-Week Low Against Dollar on Strong US Business Data

The Japanese yen has weakened to its lowest level in three weeks against the US dollar, trading around the 158 level in New York on Wednesday.

This decline comes after the release of stronger-than-expected US business activity data, which raised expectations that the Federal Reserve may raise interest rates again this year as the economy continues to strengthen.

The prospect of higher interest rates has dimmed hopes for a narrowing of the US-Japan interest rate gap, putting downward pressure on the yen.