Yen Falters Ahead of Central Bank Meetings

The Japanese yen weakened against a basket of major and minor currencies on Monday as markets began a busy week of central bank meetings in the United States and Japan. The dollar rose 0.45% to ¥154.14, its highest level since March, after hitting a low of ¥153.37 earlier in the session.

The yen had reached a seven-month high against the US dollar on Friday, ending the day up 0.6%, but market participants were looking for correction and profit-taking ahead of the key monetary policy decisions this week. The Bank of Japan is widely expected to raise interest rates by 25 basis points to 1.25% on Thursday, while the Federal Reserve is seen increasing rates by a similar amount on Wednesday.

The US dollar index rose around 0.3% to a two-week high, reflecting broad gains in the US currency against a basket of global currencies. The yield on the 10-year US Treasury note also extended its gains for a sixth consecutive session, approaching a three-year high and supporting the dollar.