Yen hits lowest level in three months against dollar

The Japanese yen weakened toward 155 per dollar, reaching its lowest level in over three months as the dollar strengthened on so-called "Trump trades," where markets are speculating that Trump’s inflationary policies could restrict the Federal Reserve’s ability to reduce borrowing costs.

Yen hits lowest level in three months against dollar

Meanwhile, Japan's producer prices saw their largest increase in 14 months in October, signaling persistent inflationary pressures. Investors are now turning their attention to Friday’s third-quarter GDP data for further insights into Japan’s economic outlook.

Eyes on BoJ moves

Additionally, the Bank of Japan’s summary of opinions from its October policy meeting revealed divisions among policymakers regarding the timing of future rate hikes. Nonetheless, the central bank maintained its projection of a possible benchmark policy rate increase to 1% by the latter half of fiscal 2025.