FX.co ★ Japanese Yen Slips as Dollar Rises

The yen declined to approximately 147.5 against the dollar on Monday, as the U.S. dollar strengthened prior to an important meeting in Washington. This meeting, involving U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy, is intended to progress a peace agreement with Russia. Investors are also focusing on insights from the Federal Reserve’s upcoming annual Jackson Hole symposium, anticipating guidance on the global interest rate trajectory. In Japan, recent data released on Friday indicated a stronger-than-expected economic expansion in the second quarter, driven primarily by net exports despite the adverse effects of U.S. tariffs. Meanwhile, Japanese officials minimized the significance of comments made by U.S. Treasury Secretary Scott Bessent, who criticized the Bank of Japan as lagging behind in policy adjustments, seemingly to pressure the central bank into increasing rates. Bank of Japan Governor Kazuo Ueda has maintained a prudent approach, highlighting that "underlying inflation" remains below the 2% target.