Yen's Weakness Challenges US-Japan Resolve

The yen's weakness is the key development in today's market, as the US dollar has reached a new high of JPY158.90 in the European morning. Despite the Bank of Japan's hawkish tone after its last meeting, the swaps market has reduced the likelihood of a rate hike at next month's meeting.

This challenges the resolve of both Japanese and US officials, who have expressed their commitment to maintaining economic stability. The greenback is narrowly mixed against other currencies, but the yen's decline stands out with a loss of around 0.65%.