The Japanese yen strengthened to a four-week high around 142 per dollar, supported by persistent U.S. dollar weakness driven by deficit concerns. Markets are also eyeing the Bank of Japan’s next move, after core inflation unexpectedly jumped to 3.5%, the highest level in over two years, reinforcing expectations of further policy tightening. Japan’s 10-year bond yield also declined to 1.47%, marking its third drop as demand climbed with global economic uncertainty.

Meanwhile, WTI crude oil futures slipped to about $61.30 per barrel, pressured by expectations of rising supply. OPEC+ is scheduled to meet this week to finalize production targets for July, with reports suggesting the group could raise output by 411,000 barrels per day. Earlier this month, the alliance agreed to accelerate supply hikes for a second consecutive month in June.

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