Japanese Yen Gains Against US Dollar Amid Renewed Diplomatic Hopes

The Japanese Yen has started the week on a positive note against the US Dollar, but is down against other major currencies. The USD/JPY pair is down by 0.17% to near 163.57 due to improved investor risk appetite amid hopes of renewed diplomatic efforts between the United States and Iran.

The US Dollar Index (DXY) has fallen by 0.25% to near 101.20, while S&P500 futures have risen by almost 1% to near 7,485, indicating a risk-on market mood.

Monetary policy announcements from the Federal Reserve and Bank of Japan on Wednesday and Friday, respectively, will be key triggers for the pair this week. Central banks expect both institutions to leave interest rates unchanged, but the BoJ is expected to reiterate its upward monetary policy path.