Japanese Yen Weakens in Thin Holiday Trade
The Japanese yen weakened past 144 per dollar in holiday-thinned trade on Monday, extending losses from last week amid concerns that the Bank of Japan is not in a hurry to raise interest rates. Last week, the yen lost over 2% as the BOJ kept its policy rate steady at 0.25% by a unanimous vote, in line with expectations.
Meanwhile, BOJ Governor Kazuo Ueda acknowledged "some weakness" in the economy during his post-meeting press conference, a slightly more dovish tone than previous pronouncements. His comments further dented prospects of a rate hike in October, although a move in December is still expected.
However, Ueda maintained the outlook that the economy was progressing steadily towards a modest recovery, emphasizing that the central bank "will keep adjusting the degree of easing" if its economic and price forecasts are realized. Externally, the yen faced pressure from a rally in risk assets as the Federal Reserve's outsized rate cut boosted the global economic outlook. (ayu)
Source: Trading Economics
