Yen Strengthens Against Dollar Amid Anticipation Of Central Bank Meetings

According to Odaily, the Japanese yen strengthened against the US dollar and other currencies during early Asian trading. The Commonwealth Bank of Australia's (CBA) global economics and market research team highlighted in a report that both the Federal Reserve and the Bank of Japan are scheduled to hold monetary policy meetings this week. If the market focuses on the convergence of their monetary policies, the dollar-yen exchange rate could fall below the year-to-date low of 140.00. The team noted that while the Bank of Japan is expected to maintain its current policy this week, Governor Kazuo Ueda might leave the door open for a rate hike as early as October. Meanwhile, the Federal Open Market Committee (FOMC) is likely to lower the policy rate by 25 basis points this week. FactSet data shows that the dollar-yen exchange rate fell by 0.2% to 140.52, having touched 140.29 last Friday, marking the lowest intraday level this year.