The Japanese yen rose 0.7% to around 153.7 per dollar on Monday, recovering losses from the previous week as the US dollar weakened following President-elect Donald Trump’s announcement of Scott Bessent as Treasury Secretary.
Japanese yen slightly rises against dollar
Markets are betting that Bessent will focus on economic and market stability rather than implementing abrupt policy changes, leading traders to scale back on “Trump trades.” Domestically, investors are closely monitoring Tokyo's inflation data set to be released this week, as it is seen as a key indicator of broader national price trends. Last week, mixed economic data provided no clear direction for Japan's monetary policy.
Another interest rate hike is possible
Meanwhile, Bank of Japan Governor Kazuo Ueda hinted at the possibility of another interest rate hike as early as December, citing concerns over the yen’s recent weakness. Additionally, reports suggest that Prime Minister Shigeru Ishiba’s administration is considering a $90 billion stimulus package to help households cope with rising prices.
