Yen gains as dollar weakens amid election uncertainty

The Japanese yen strengthened past 152 per dollar on Monday, recovering losses from the previous session, primarily due to a weaker dollar amid rising uncertainty surrounding the U.S. presidential election outcome.

Yen gains as dollar weakens amid election uncertainty

Markets are also preparing for the Federal Reserve's upcoming decision, which is expected to involve a cautious 25 basis point rate cut. Domestically, the Bank of Japan held its policy rate steady at 0.25% last week as it navigates a political upheaval that has raised concerns about the nation's fiscal and monetary strategies. In a post-meeting briefing, BOJ Governor Kazuo Ueda noted that economic risks in the U.S. seem to be subsiding, hinting at conditions that could lead to a potential rate hike.

BOJ rate hike to 0.5% possible by January amid speculation

Speculation is mounting that the BOJ may raise rates to 0.5% as soon as January, with currency fluctuations and inflation data being critical factors in this decision.