Commonwealth Bank of Australia: It is expected that the Governor of the Bank of Japan may open the door to another rate hike, which may be as early as October

The yen strengthened against the dollar and other currencies in early Asian trading. The Commonwealth Bank of Australia (CBA) Global Economics and Markets Research team pointed out in a research note that the Federal Reserve and the Bank of Japan will both hold monetary policy meetings this week, and the dollar against the yen may fall to a year-to-date low below 140.00 if the market focuses on monetary policy convergence between the two. The team said that while the Bank of Japan is expected to keep its policy unchanged this week, the bank's governor Kazuo Ueda may leave the door open to another rate hike, possibly as early as October. Meanwhile, the FOMC may cut the policy rate by 25 basis points this week. The dollar fell 0.2% against the yen to 140.52, according to FactSet, and hit 140.29 on Friday, the lowest intraday level so far this year. (Jinshi)