The Japanese yen witnessed a decline today, Monday, against a basket of global currencies, continuing its losses for the second day in a row against the US dollar, as the dollar rose against the yen by about 0.2%, in addition to its decline of about 0.1% at the end of Friday’s trading against the dollar, as part of correction and profit-taking operations, After recording the highest level in two weeks at 149.20 the previous day.

It is worth noting that, in terms of last week’s transactions, the Japanese yen achieved an increase of 0.3% against the US dollar, the first weekly gain in the last five weeks, and the largest weekly gain in 2024, specifically since late December 2023.
The Japanese yen had occupied the lead in the global currency market initially due to the comments of some officials in Japan, which provided clear support for the yen’s movement upward, rebounding from its low levels against a basket of global currencies. These comments increased the possibilities of raising Japanese interest rates next April. Bank of Japan board member Hajime Takata said that the Japanese central bank should consider reforming its extremely loose monetary policy, including exiting negative interest rates and controlling bond yields, in addition to losing the yield on ten-year US Treasury bonds. About 1.6% over the course of the entire sessions of last week, and the lowest level in two weeks was recorded at 4.178%, which favored the rise in low-yielding currencies.

The yen is still moving around the 150 level, with markets awaiting a very important speech by Bank of Japan Governor Kazuo Ueda about inflation developments in the country and the future of negative interest rates.
As the Governor of the Bank of Japan, Kazuo Ueda, is scheduled to deliver an important speech tomorrow, Tuesday, about the development of inflation and wages in the country after the recent data, and about the future of very easy stimulus policy tools and negative interest rates, noting that Ueda had stated last week, that it is former. It is too early to conclude that inflation is close to achieving the central bank's 2% target on a sustainable basis, and he stressed the need to examine more data on wage expectations.

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