Japanese Yen gains against the US Dollar at the start of Fed-BoJ policy week

The Japanese Yen trades higher against its major currency peers at the start of the week.
Investors expect both the Fed and the BoJ to leave interest rates unchanged.
Japan announces that it has started releasing oil from its strategic holdings to fulfil energy needs.

Sagar Dua FXStreet

The Japanese Yen (JPY) trades firmly against its major currency pairs, except the antipodeans, during the European trading session on Monday. The USD/JPY pair is down 0.26% to near 159.30 at the start of the busy central banks’ week.

Japanese Yen Price Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.21%	-0.19%	-0.25%	-0.12%	-0.48%	-0.72%	-0.19%
EUR	0.21%		0.11%	-0.05%	0.10%	-0.26%	-0.38%	0.03%
GBP	0.19%	-0.11%		-0.08%	-0.01%	-0.37%	-0.52%	-0.04%
JPY	0.25%	0.05%	0.08%		0.16%	-0.21%	-0.28%	0.07%
CAD	0.12%	-0.10%	0.00%	-0.16%		-0.36%	-0.50%	-0.03%
AUD	0.48%	0.26%	0.37%	0.21%	0.36%		-0.15%	0.40%
NZD	0.72%	0.38%	0.52%	0.28%	0.50%	0.15%		0.47%
CHF	0.19%	-0.03%	0.04%	-0.07%	0.03%	-0.40%	-0.47%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

The Federal Reserve (Fed) and Bank of Japan (BoJ) are scheduled to announce their monetary policies on Wednesday and Thursday, respectively.

Investors expect the Fed to hold interest rates steady in the current range of 3.50%-3.75% as inflation expectations in the United States (US) have de-anchored amid surging oil prices due to the closure of the Strait of Hormuz.

According to the CME FedWatch tool, the Fed is unlikely to cut interest rates anytime before the October policy meeting.

As of writing, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.22% lower to near 100.30. Still, the DXY is close to its over nine-month high of 100.54 posted on Friday.

Also, the BoJ is expected to hold interest rates steady at 0.75% and keep the door open for further policy tightening. Investors will pay close attention to BoJ Governor Kazuo Ueda’s press conference to get cues about how much rising oil prices could prompt inflation and weigh on economic growth.

Higher oil price is an unfavorable situation for the Japanese Yen, given that the Asian economy relies heavily on oil imports to fulfill its energy needs.

Earlier in the day, Japan announced that it had started lowering its oil reserves to meet its energy needs amid escalating supply concerns in the wake of the war in the Middle East, which involves the US, Israel, and Iran.

Economic Indicator

Fed Interest Rate Decision

The Federal Reserve (Fed) deliberates on monetary policy and makes a decision on interest rates at eight pre-scheduled meetings per year. It has two mandates: to keep inflation at 2%, and to maintain full employment. Its main tool for achieving this is by setting interest rates – both at which it lends to banks and banks lend to each other. If it decides to hike rates, the US Dollar (USD) tends to strengthen as it attracts more foreign capital inflows. If it cuts rates, it tends to weaken the USD as capital drains out to countries offering higher returns. If rates are left unchanged, attention turns to the tone of the Federal Open Market Committee (FOMC) statement, and whether it is hawkish (expectant of higher future interest rates), or dovish (expectant of lower future rates).

AUD/USD extends decline to fresh monthly lows below 0.7100

AUD/USD trades south of 0.7100 early in the Asian session on Thursday, as the US Dollar soared following the Federal Reserve's monetary policy announcement. The Fed delivered a 25 bps rate hike as expected, while policymakers expressed concerns about inflation leading to bets of additional hikes before year-end.

USD/JPY flirts with 156.00 after Fed's hawkish hike

USD/JPY trades at fresh weekly highs around 156.00 early on Thursday, as the US Dollar soared following the Federal Reserve's monetary policy announcement. The US central bank hiked the benchmark rate by 25 bps as expected, while Chair Kevin Warsh delivered quite hawkish comments in the press conference that followed the decision.

Gold dips towards $4,250 in the Fed's aftermath

Gold erased intraday gains and turned negative following the Federal Reserve's decision to hike rates by 25 bps as expected. The XAU/USD pair briefly surpassed the $4,360 level, now accelerating its slide towards the $4,250 price zone. Hawkish words from Chair Kevin Warsh fueled bets for additional hikes before year-end.

Fed raises 2026 interest rate forecast to 4.1%, lifts PCE inflation projections

The Federal Reserve's (Fed) latest dot plot projections, released by the Federal Open Market Committee (FOMC) on Wednesday, show policymakers now expect interest rates to stand at 4.1% by the end of 2026, up from 3.8% in June.

Fed recap: One hike down, more to come? The Fed’s new rate path says yes

The Federal Reserve (Fed) raised its Fed Fund Target Range (FFTR) range by 25 basis points to 3.75%-4.00% in a unanimous decision, saying the move would support a timelier return to its 2% inflation goal.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.