FX.co ★ Yen Hovers Near 9-Month Low

The Japanese yen dipped to approximately 154.6 per dollar on Monday, maintaining its position near the lowest point observed since February, despite the release of growth data that exceeded expectations. Japan's economy experienced a contraction of 0.4% quarter-on-quarter for the three months leading up to September, overturning a 0.6% expansion witnessed in the second quarter but performing better than market predictions of a 0.6% reduction. The currency continues to face downward pressure following Prime Minister Sanae Takaichi's call for the Bank of Japan to sustain low interest rates, stressing that monetary policy should facilitate both strong economic growth and stable price increments. In the meantime, BOJ Governor Kazuo Ueda noted the resilience in consumption driven by increased household incomes and an improving job market, indicating that core inflation is gradually nearing the BOJ's 2% target, thereby suggesting the possibility of a forthcoming interest rate hike.