Japanese yen gains on dollar weakness

The yen strengthened to around 149 per dollar on Monday, advancing for a second session as the greenback retreated on concerns over a possible US government shutdown.

Investors also turned cautious ahead of key US data this week that could shape the Federal Reserve’s policy outlook.

In Japan, a busy slate of releases is due, including the Tankan business sentiment survey, consumer confidence, industrial production, retail sales and the latest Bank of Japan Summary of Opinions.

Minutes from the BOJ’s July meeting indicated policymakers remain open to further rate hikes if growth and inflation progress as expected.

While the central bank left rates unchanged in September, two dissents highlighted the prospect of additional tightening.

Politically, the ruling Liberal Democratic Party will elect a new leader on October 4 to replace outgoing Prime Minister Shigeru Ishiba.