The yen rose in Asian trade on Tuesday against a basket of major rivals, expanding gains for the second straight session against the dollar and hitting a three-week high against a basket of major rivals.

The odds of a Japanese interest rate hike in July tumbled following the Bank of Japan’s latest policy meeting, with traders now awaiting more Japanese labor and inflation data to gather clues.

The Price

The USD/JPY price fell 0.4% today to 143.43, the lowest since June 13, with a session-high at 144.05.

The yen rose 0.45% on Monday against the greenback, the second profit in three days.

US Dollar

The dollar index fell 0.3% on Tuesday on track for the seventh straight loss in a row, plumbing three-year lows at 96.61 against a basket of major rivals. 

US President Donald Trump’s recent tax bill raised concerns about the financial stability of America, with ongoing uncertainty as well about US trade deals. 

Investors are now betting on a faster pace of Fed rate cuts this year, while waiting for crucial US data this week, including the payrolls report on Friday. 

Trump continued to pressure the Federal Reserve to cut interest rates, and sent Fed Chair Powell a list of interest rates by global central banks, saying that US rates should be between the 0.5% Japanese rate and the 1.75% Danish rate.

Japanese Rates

The odds of a Bank of Japan’s 0.25% interest rate hike in July is still below 40%.

Now investors await more clues from Japan this week to form a more accurate prediction. 

Oil prices dropped on Monday as tensions receded in the Middle East with increasing speculation about a potential OPEC+ production hike in August.

Recent EIA data showed US crude output hit a record high in April at 13.47 million barrels, up from 13.45 million in March, pressuring prices. 

On trading, Brent August futures fell 0.2%, or 16 cents to $67.61 a barrel, with a monthly profit of 5.8%, and a quarterly loss of 8.2%.

US crude August futures fell 0.6%, or 41 cents to $65.11 a barrel, with a monthly profit of 6.9%, and a quarterly loss of 6.33%.

The dollar fell against most major rivals on Monday amid increasing concerns about a possible trade war once more between the US and other major economies. 

Canada cancelled the digital services tax aimed at US tech companies in an attempt to revive trade talks with the US.

The Canadian finance ministry said PM Mark Carney and US President Donald Trump will resume trade talks with an aim at reaching a deal by July 21.

US Trade Secretary Howard Lutnick thanked Canada for cancelling the tax, which would’ve tanked any potential trade deal with the US.

However, Trump threatened to increase tariffs on Japanese goods even further as both sides fail to reach a deal.

Later this week, the Senate will announce its decision on Trump's tax bill, while analysts also await the payrolls report later on Friday.

Otherwise, the dollar index fell 0.6% as of 20:51 GMT to 96.8, with a session-high at 97.3, and a low at 96.8.

Aussie

The Australian dollar rose 0.8% against its US counterpart as of 21:08 GMT to $0.6581.

Loonie

The Canadian dollar rose 0.4% as of 21:08 GMT against its US counterpart to $0.7342.

Gold prices rose on Monday as the dollar index fell against a basket of major rivals, with the precious metal marking the second quarterly profit in a row. 

Canada cancelled the digital services tax aimed at US tech companies in an attempt to revive trade talks with the US.

The Canadian finance ministry said PM Mark Carney and US President Donald Trump will resume trade talks with an aim at reaching a deal by July 21.

US Trade Secretary Howard Lutnick thanked Canada for cancelling the tax, which would’ve tanked any potential trade deal with the US.

Later this week, the Senate will announce its decision on Trump's tax bill, while analysts also await the payrolls report later on Friday.

Otherwise, the dollar index fell 0.6% as of 20:51 GMT to 96.8, with a session-high at 97.3, and a low at 96.8.

Gold spot prices rose 1% to $3319.8 an ounce as of 20:51 GMT, with a monthly loss of 0.2%, and a quarterly profit of 4.2%.