Yen Surges Against Dollar Amid Postponed Fed Rate Hike Bets

The yen strengthened against the US dollar on Tuesday, moving 0.2% higher to 159.055 yen, despite weak Japanese GDP data.

According to Capital Economics analysts, the details of the data were mixed, with GDP expanding at an annualised 1.1% in the second quarter.

The analysts noted that the government's limiting of the pass-through from higher energy prices and a jump in government consumption suggest that Takaichi's expansionary fiscal policies are starting to have an impact.