FX.co ★ Japanese Yen Gains on Dollar Weakness

The Japanese yen appreciated to approximately 149 against the US dollar on Monday, marking its second consecutive session of gains. This movement is attributed to the declining strength of the US dollar, amid growing concerns about a potential government shutdown in the United States. Investors exercised caution as they awaited significant US economic data releases this week, which could influence the Federal Reserve's future policy decisions. In Japan, a series of important data announcements are anticipated, including the Tankan business sentiment survey, consumer confidence figures, industrial production statistics, retail sales results, and the latest Bank of Japan (BOJ) Summary of Opinions. Minutes from the BOJ's meeting in July revealed that policymakers remain open to the possibility of further interest rate hikes, provided that economic growth and inflation align with expectations. Although the central bank maintained steady rates in its September meeting, two members dissented, indicating a potential for further tightening. On the political front, the ruling Liberal Democratic Party is scheduled to elect a new leader on October 4, succeeding the current Prime Minister, Shigeru Ishiba.