Ella 
The Japanese yen (JPY) strengthened for a second day in a row as hawkish comments from Bank of Japan Governor Kazuo Ueda contrasted with dovish stance from Federal Reserve Chairman Jerome Powell.
Bank of Japan Governor Ueda told parliament on Friday that the central bank may raise interest rates further if its economic forecasts are accurate. In addition, national consumer price index (CPI) inflation data in July remained at the highest level since February, reinforcing the Bank of Japan’s hawkish stance on its policy outlook.
The U.S. dollar (USD) fell in value as the likelihood of a rate cut in September increased. Now is the time to adjust policy,” Fed Chairman Jerome Powell said at the Jackson Hole symposium. However, Powell did not specify when he would start cutting interest rates or how deep they might be.
Traders expect the Fed to cut interest rates by at least 25 basis points in September. Markets now fully expect the Fed to cut interest rates by at least a quarter point at its September meeting, according to CME Group’s FedWatch tool.
