Ella 
The Japanese yen (JPY) continued to rise on Monday as traders remained cautious ahead of Wednesday’s Bank of Japan (BoJ) policy meeting, which could lead to a rate hike. The market is betting that the Bank of Japan may raise interest rates by 10 basis points to 0.1%, and the market is generally expected to announce a plan to reduce the scale of bond purchases.
The yen may also find support as traders may unwind their carry trades ahead of the Bank of Japan’s policy decision. Japan’s chief monetary diplomat Masato Kanda said at the G20 meeting on Friday that foreign exchange fluctuations had a negative impact on the Japanese economy. Kanda noted that a soft landing was increasingly likely and stressed the need to closely monitor the economy and implement necessary measures, Reuters reported.
The dollar faces challenges amid expectations the Federal Reserve will cut interest rates three times this year starting in September as U.S. inflation cools and labor market conditions ease.
