USDJPY: Asian foreign exchange was little changed, the dollar neMost Asian currencies were range-bound on Monday, while the dollar fell near a two-month low as markets awaited key US inflation data for further reading. signals about when the Federal Reserve will cut interest rates.
Regional currencies are surging from last week after dovish signals from Fed Chairman Jerome Powell and labor data reinforced expectations that the central bank will begin cutting interest rates soon. after June.
This notion weighed on the dollar, dragging the greenback to a nearly two-month low.
Japanese yen is nearly 1 month high as expectations of BOJ's pivot increase
The Japanese yen is one of the currencies that has benefited the most from the dollar's decline, rising sharply in the past two sessions to its highest level in more than a month.
The yen traded around 147 per dollar on Monday and was also supported by growing confidence that the Bank of Japan is close to ending its policy of negative interest rates and yield curve control this week. next.
The upwardly revised GDP data shows that the Japanese economy is avoiding a technical recession in the fourth quarter. The strength of the economy gives the BOJ more room to tighten policy sooner.
The BOJ is expected to hold a meeting next week, with a Reuters report saying that policymakers are considering changing interest rates in March or late April.
Other Asian currencies moved in flat to low ranges. The Australian dollar fell 0.2% as expectations that the Reserve Bank would gradually increase interest rates weighed on the currency.
Signs of cooling economic growth also raise expectations that the RBA will cut interest rates this year.
