The yen declined against the dollar as the Bank of Japan remains cautious about tightening monetary policy, suggesting future rate hikes will be gradual despite economic recovery.
While BoJ showed optimism about Japan's economic recovery, Ueda noted some lingering weakness, which exerted additional pressure on the yen amidst low Japanese yields.
Aggressive monetary policy easing in the US could fuel risk appetite and impact demand for the yen, alongside expectations of further rate cuts.
Next week, manufacturing and services PMI reports will be pivotal, with U.S. manufacturing on decline since June and Japan's sectors remaining stable.
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