Japan’s weak yen reflects deeper shifts in capital flows, investment patterns, and dollar strength—and could create new tensions with the US.

"The weak yen is one contributing factor. Combined with inflation and rising labor costs, it is creating a cumulative burden on businesses."

The U.S. dollar steadied near a 2-week low on Monday as investors scaled back bets on a Fed rate hike this year, while the yen remained near a 40-year low.