Japanese Yen Firms Ahead of BOJ Meeting
The yen strengthened to around 147.5 per dollar on Monday, recovering part of last week’s losses as markets turned their focus to the Bank of Japan’s policy meeting.
The BOJ is widely expected to leave rates steady at 0.5% as officials weigh domestic headwinds and global risks, including the effects of US tariffs.
Traders also await fresh trade data, with both exports and imports projected to stay subdued, as well as inflation figures, where core CPI is forecast to slow to 2.7%, the lowest since November 2024. Externally, the Federal Reserve is anticipated to deliver a 25 basis point rate cut this week, with recent US data signaling softer labor conditions and muted inflation. Meanwhile, trading volumes are likely to remain light as Japanese investors observe a national holiday.
Source: Trading Economics