Ella 
The Japanese yen (JPY) extended losses against the U.S. dollar for a seventh straight day, falling to a more than four-month low in Asia on Wednesday. The Bank of Japan (BoJ) raised short-term interest rates for the first time since 2007 and scrapped its complex bond yield control curve policy at the end of its March meeting on Tuesday. Despite this historic move, the Bank of Japan said financial conditions will remain accommodative and did not provide any guidance on future policy measures or the pace of policy normalization. This, coupled with the continued maintenance of risk appetite, continues to suppress the safe-haven function of the yen.
On the other hand, the dollar stabilized near the two-week high hit on Tuesday on expectations that the Federal Reserve (Fed) will reiterate its view of maintaining higher interest rates for a longer period amid persistently high inflation. The Fed’s hawkish outlook remains supportive of a rise in U.S. Treasury yields, which has led to a widening of U.S.-Japan interest rate differentials, putting additional downward pressure on the yen. This in turn pushed USD/JPY above the 151.00 round figure, supporting the prospect of further gains. However, bulls will likely wait for the Fed’s policy decision to get clues on the path of rate cuts before placing their bets.
