FX.co ★ Yen Holds Decline on Thin Holiday Trading

The Japanese yen lingered around the 154 per dollar mark during subdued trading on Monday, reaching its lowest point in nine months. This stagnation comes as the Bank of Japan (BOJ) maintains a cautious stance on interest rate hikes, contrasting with the more aggressive approach of the US Federal Reserve. Last week, the BOJ decided to keep interest rates steady, with Governor Kazuo Ueda highlighting concerns that global trade policies might hinder growth and corporate earnings. While Ueda did not rule out a potential rate increase in December, his cautious tone left market participants unsatisfied. Meanwhile, the newly appointed Finance Minister, Satsuki Katayama, revised her previous position from March regarding the yen's fair value, which she had pegged between 120-130 per dollar. Now overseeing currency policy, her stance has shifted. Investors are now directing their attention to important economic data releases this week, including figures on wages and household spending.