The Japanese Yen rises for a second day amid bets on a Bank of Japan rate increase following stronger inflation data.
The USD/JPY pair declined to around 158.80 in Asian trading on Monday, extending losses for a second consecutive session. The Japanese Yen strengthened against the US Dollar as investors priced in potential Bank of Japan rate hikes after inflation data exceeded expectations for a second straight month.
Recent inflation figures have reinforced market expectations that the BoJ may tighten monetary policy sooner than anticipated. The US Dollar remained subdued, contributing to the pair’s downward movement amid intraday volatility.
No immediate market reaction was specified, but the shift in rate hike expectations continues to drive yen demand.