The Japanese currency is trading near its lowest level in two weeks. The Japanese government is closely monitoring the yen's movements and inflation.
The likelihood of a Japanese interest rate hike in October is slim.
The Japanese yen declined in Asian markets on Monday against a basket of major and minor currencies, continuing its losses for the second consecutive day against the US dollar, moving into negative territory towards its lowest levels in two weeks, under pressure from weak prospects of a Japanese interest rate hike this October.
The yen's decline comes amid recent statements by the Japanese Prime Minister regarding monitoring the yen's movements and inflation rates, while emphasizing the government's readiness to take necessary measures when needed.
Price overview
Today's Japanese Yen exchange rate: The dollar rose against the yen by about 0.1% to (158.40¥), from today's opening price of (158.27¥), and recorded a low level at (158.17¥).
The yen ended Friday's trading down 0.25% against the dollar, its first loss in three days, as recovery stalled from a two-week low of 158.51 yen.
The yen lost 0.3% against the dollar last week, its fourth consecutive weekly loss, due to concerns about interest rate differentials between Japan and the United States.
Japanese interest rate
The pricing of the probability of the Bank of Japan raising interest rates by a quarter of a percentage point at its October meeting is currently stable at around 25%.
In order to reprice those probabilities, investors are awaiting further data on inflation, unemployment and wage levels in Japan.
The Japanese government, through Prime Minister Sanae Takaichi, stated last week that it will continue to closely monitor exchange rate and price movements and will take appropriate measures in accordance with economic developments. She also affirmed before parliament on Thursday her respect for the Bank of Japan's independence in determining its monetary policy.
Takaichi also stressed that the government will guide fiscal policy while taking into account the various factors affecting the economy, including interest rates and yen movements.
