Yen Weakest Since Early Asian Trading Session Amid Divergent Monetary Policies

The Japanese yen traded in the lower-159 range against the US dollar in Sydney's morning session on August 28, edging slightly towards yen weakness and dollar strength from the prior day.

As of 8:30 a.m. local time, indicative quotes stood at 159.39-43 yen per US dollar, down roughly 13-15 sen from 159.26-28 yen at the same time the previous day.

The Australian dollar climbed into the upper-114 range against the yen, with one Australian dollar fetching 114.66-69 yen, up 36-38 sen from 114.30-31 yen the prior day.

Market participants expect further yen weakness due to diverging monetary policy trajectories between Japan and the United States.