Ella 
The Japanese yen (JPY) extended losses against the U.S. dollar (USD) for the second consecutive day. According to Reuters, the decline may be due to comments made by Bank of Japan (BOJ) Deputy Governor Shinichi Uchida on Wednesday: “We will not raise interest rates when the market is unstable. ”
Vice President Uchida also pointed out that if market fluctuations change economic forecasts, risk assessments or forecasts, the Bank of Japan’s interest rate strategy will also be adjusted accordingly. In light of recent market volatility, he stressed the need to carefully monitor the impact of his policies on the economy and prices, saying: “We must maintain the current level of monetary accommodation for the time being.
USD/JPY upside potential may be limited as the dollar faces challenges and expectations for deeper rate cuts starting in September. The odds of the U.S. Federal Reserve (Fed) cutting interest rates by 50 basis points (bps) in September are now 67.5%, up from 13.2% a week ago, according to the CME FedWatch tool.
