Japanese yen weakens on dollar strength

The yen slipped past 148 per dollar on Monday, extending last week’s losses as the greenback strengthened ahead of fresh remarks from Federal Reserve officials and a key US inflation reading.

The Fed delivered a widely anticipated quarter-point cut last week, its first since December, while projecting two more reductions this year.

At home, the Bank of Japan kept its policy rate unchanged at 0.5% for a fifth consecutive meeting on Friday, as expected.

The central bank noted the economy is recovering moderately but flagged pockets of weakness and warned of risks from global trade policies. It also unanimously approved plans to start selling its ETF and J-REIT holdings, signaling a subtle shift in asset support.

Looking ahead, investors await Japan’s latest PMI and Tokyo inflation data, as well as minutes from the BOJ’s July meeting, which could offer insight into the central bank’s near-term policy stance.