The Japanese yen continued to trade at a weak level, approximately 150.7 against the US dollar on Tuesday, marking its position near a three-week low. This weakness comes as the dollar gains strength, buoyed by robust US economic data and indications that President Donald Trump might adopt a more selective tactic regarding tariffs. However, Trump’s recent announcement on Monday to impose tariffs on sectors such as automobiles and pharmaceuticals has sparked concerns about potential threats to significant Japanese exports. On the domestic front, the minutes from the Bank of Japan’s January meeting revealed that policymakers are open to the prospect of further interest rate hikes, contingent on wage growth and inflation patterns. Notably, one official mentioned that the policy rate could reach 1% during the latter half of the fiscal year 2025. In the preceding week, the Bank of Japan opted to maintain its policy rate at 0.5%, with board members expressing caution as they evaluate global economic risks, particularly those arising from potential increases in US tariffs.