The Japanese yen traded around 147.7 per dollar on Monday, holding in a narrow range for about a week as investors continued to assess the outlook for Bank of Japan monetary policy.
Minutes from the BOJ’s July meeting showed that board members maintained their view that further interest rate increases remain appropriate, despite heightened uncertainty surrounding tariffs.
The summary also indicated that Japan’s economic growth is expected to moderate and that any improvement in underlying inflation is likely to be temporarily sluggish.
However, some members favored maintaining the current accommodative stance for the time being, citing significant uncertainty over whether the bank’s economic projections will be realized.
Looking ahead, investors are awaiting key Japanese economic indicators for further guidance, including second quarter GDP, the Reuters Tankan survey, the producer price index, and machine tool orders.
AloJapan.com