The Japanese yen strengthened past 141 per dollar on Monday, marking a seven-month high as the dollar weakened amid rising concerns over the Federal Reserve’s independence.
The move followed reports that the White House is exploring the possibility of removing Fed Chair Jerome Powell, with President Donald Trump growing increasingly frustrated over the Fed’s reluctance to cut interest rates.
On the trade front, Japan is reportedly considering boosting imports of soybeans and rice as a concession in ongoing tariff negotiations with the US. American officials have criticized Japan for market barriers in sectors like automobiles and rice, while also pushing for increased imports of US meat, fish products, and potatoes.
Looking ahead, market attention is turning to next week’s Bank of Japan policy meeting, where the central bank is expected to keep the policy rate steady at 0.5%.
AloJapan.com