The yen slipped to '147 per dollar on Friday as markets reacted to a new US-Japan trade deal imposing a 15% tariff on Japanese exports, easing from the 25% threat but keeping tensions alive. Tokyo's core inflation stayed above the BOJ's 2% target, hinting at possible rate hikes, while the leading economic index was revised down to 104.8 in May from 105.3. With the BOJ's policy decision due next week, rates are expected to remain unchanged amid tariff-driven uncertainty.

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