The Japanese yen rose in Asian trade on Monday against a basket of major rivals, moving in a positive zone against the US dollar and recovering from two-week lows, and about to trade above 150 yen once more.
The yen performed strongly in February, led by the outlook of a Japanese interest rate hike in March with traders now waiting for more clues on the future path of Japan’s monetary policies.
The Price
The USD/JPY pair fell 0.25% today to 150.24 yen per dollar, with February 20 highs at 151.02.
The yen lost 0.55% on Friday, the third loss in a row on profit-taking away from a four-month high at 148.56.
The yen rallied 2.95% in February against the dollar, marking the second monthly profit in a row, and the largest since July 2024 amid mounting inflationary pressures in Japan and following bullish remarks from Bank of Japan officials.
Japanese Rates
BOJ Deputy Governor Shinichi Uchida said on Friday the bank will continue to reduce its purchases of government bonds despite the recent rise in yields, asserting its massive holdings of bonds still act as a massive stimulus to the economy.
Uchida reiterated the BOJ’s readiness to hike interest rates if economic developments and prices went as expected
The odds of a BOJ interest rate hike in March now stand at 85%.
