Ella 
The Japanese yen (JPY) regained recent losses against the US dollar (USD) on Friday. Traders are closely assessing Japan’s monetary policy outlook as Bank of Japan officials have signaled they are ready to raise interest rates further, although they have become more cautious amid heightened market volatility.
According to Reuters, Japanese Finance Minister Shuni Suzuki emphasized on Thursday that monetary policy decisions fall within the purview of the Bank of Japan and that they will continue to pay close attention to market developments.
The dollar faces challenges as expectations grow that the Federal Reserve may cut interest rates in September. Traders are assessing complex signals from the U.S. economy, trying to determine whether it will see a soft landing or slide into recession. CME’s FedWatch tool shows that markets are now fully expecting the Fed to cut interest rates by 25 basis points in September.
