The yen traded weakly against sterling on Tuesday as economic reports spread news of corporate bankruptcies.

Mid-afternoon saw the yen trading at 240.71 against sterling and fall close to a weekly low weekly low,  although there was a brief rally in anticipation of inflation reports from the UK being released.

The yen fared better against the euro, trading at 162.22, while rates against the dollar approached a weekly high at 121.83

Reports from Japan show that consumer confidence declined in May, at the same time as a 24.4 per cent rise in corporate bankruptcies was revealed.

On Tuesday, British government figures revealed that inflation dropped to 2.5 per cent in May.

The news is likely to affect trading in sterling this week as the Bank of England has warned that the base rate is likely to rise again later this year.