The Japanese yen rose slightly in the Asian market on Monday against a basket of global currencies, continuing to recover for the second day in a row from the lowest level in a year against the US dollar, after trading again above the 150 yen barrier, thanks to purchasing activity from cheap levels.
This rise comes with the start of the monetary policy meeting of the Central Bank of Japan, amid expectations about raising the yield ceiling on government bonds, in a move that will enhance the possibilities of monetary normalization in Japan in the near term.
Japanese yen exchange rate today
The dollar fell against the yen by 0.1% to (149.47 yen), from today's opening price of (149.60 yen), and recorded the highest level at (149.82 yen).
On Friday, the yen rose by 0.5% against the dollar, the first gain in the last four days, after recording the lowest level in a year the previous day at 150.77 yen per dollar.
In contrast to recovering from low levels, the yen rose on Friday after the release of the Tokyo Consumer Price Index during October, which highlighted growing inflationary pressures on monetary policy makers at the Bank of Japan.
Central Bank of Japan
The activities of the monetary policy meeting of the Bank of Japan will begin later today, with decisions to be issued tomorrow, Tuesday, amid expectations of maintaining ultra-easy monetary instruments without any significant change.
A recent series of hikes in global interest rates has increased pressure on the Bank of Japan to change its control over bond yields, as speculation has increased that Japan's dovish central bank may raise the current yield ceiling at a meeting this week.
“Our rule of thumb remains that the Bank of Japan will leave its monetary policy settings unchanged, although we acknowledge there is a risk that they will announce adjustments to their yield curve control program,” said Commonwealth Bank of Australia currency analyst Carol Kong.
Carroll explained: The Japanese central bank meeting will be more exciting than the meetings of the Federal Reserve and the Bank of England expected this week, due to growing speculation about adjusting the yield curve policy on Japanese bonds.
