The Japanese yen weakened against major currencies on Wednesday, extending recent losses as renewed trade concerns reduced demand for the traditional safe-haven currency. The dollar rose 0.3% to 151.20 yen in early Asian trading, according to data compiled by financial information providers. The yen has lost nearly 10% against the dollar over the past year, with the exchange rate near multi-decade lows. Its weakness reflects global trade tensions, particularly between the United States and China, as well as Japan’s heavy reliance on energy imports and the Bank of Japan’s ultra-loose monetary policy. The policy divergence with the Federal Reserve’s higher-for-longer rate stance leaves the yen less attractive to yield-seeking investors, while investors often favor the dollar because of its higher interest rates and stronger economic outlook. Japanese authorities have warned verbally about excessive volatility and intervened to support the yen in 2022, the first such action since 1998. A weaker yen helps exporters by making Japanese goods cheaper overseas and increasing the value of repatriated profits, but raises the cost of imported energy, food and raw materials, adding to inflation and household cost-of-living pressures. International investors face effects on returns and currency-hedging strategies, while a potential reversal could create opportunities for some investors. The yen’s future path will remain an important indicator for currency markets and broader economic confidence as trade negotiations and central-bank policies evolve.