The Japanese yen strengthened past 156 per dollar on Monday, building on last week’s gains as investors prepared for the Bank of Japan's upcoming policy decision.
Yen strengthens ahead of BOJ decision
BOJ Governor Kazuo Ueda and Deputy Governor Ryozo Himino hinted at the possibility of a rate hike at this week’s meeting, supported by strong inflation and wage data. Japan’s Finance Minister Katsunobu Kato also reaffirmed the government's commitment to "appropriate action" to support the yen, further boosting the currency.
On the economic front, Japan's machinery orders rose 3.4% month-on-month in November, surpassing market expectations of a 0.4% decline and marking the highest growth in nine months.
Yen gains as dollar pulls back before Trump inauguration
Additionally, the yen benefited from a pullback in the U.S. dollar ahead of Donald Trump’s inauguration as traders awaited more clarity on his proposed policies.
