FX.co ★ Yen Holds Near 7-Month High

The Japanese yen edged toward 154 per dollar on Monday, remaining near its strongest levels since February. The currency was supported by expectations of more aggressive policy tightening by the Bank of Japan, the unwinding of carry trades, and indications of increased asset repatriation by domestic investors.

The BOJ is widely expected to raise its policy rate to 1.25% on Friday, which would mark its highest level since April 1995, as the central bank responds to persistent upside risks to inflation. Markets are also focused on BOJ guidance regarding the likelihood of an additional rate hike later this year.

At the same time, US Treasury Secretary Scott Bessent has repeatedly urged the BOJ to adopt a more aggressive tightening stance to prevent further yen depreciation. Investors are also closely watching developments in the Middle East, with oil prices surging again after Saudi Arabia shut down the key East–West pipeline, a major route that bypasses the Strait of Hormuz.