FX.co ★ Japanese Yen Slips Despite Hawkish Ueda Remarks

The Japanese yen depreciated beyond 157 against the dollar on Monday, reaching a two-week low. This decline occurred despite assurances from Bank of Japan Governor Kazuo Ueda that the central bank remains committed to raising interest rates, provided that the economic and price conditions align with their projections. Governor Ueda's remarks highlight a strengthening belief that Japan could be transitioning out of its prolonged deflationary phase into a more robust and growth-oriented economic environment. The yen also faced downward pressure due to fiscal challenges stemming from Prime Minister Sanae Takaichi's expansive spending plans aimed at stimulating economic growth. Meanwhile, investors remain vigilant regarding the possibility of currency intervention, as business leaders urge government action to bolster the yen's value. Additionally, external concerns include assessing the repercussions of the United States' aggressive stance toward Venezuela and awaiting significant US economic data this week, which could potentially influence the Federal Reserve's future policy decisions.