The USDJPY fell during morning trading on Monday, trading below the 140-yen level for the first time since July 2023, weighed down by the strong decline in the US dollar in the major currency market.
The sharp decline of the dollar came on the back of growing market expectations that the US Federal Reserve may cut interest rates more aggressively at its meeting scheduled for this week, as markets are expecting a 59% probability that the US Federal Reserve will cut interest rates by 50 basis points at the next meeting, according to the US interest rate tracker of the CME.
On the other hand, the dollar found downward pressure on the back of foreign exchange markets’ expectations that the Bank of Japan will continue its rate hike cycle but gradually, as the Bank of Japan is likely to raise rates again this year, supporting the yen against the US dollar.
In the main forex market today, the USDJPY fell 0.80% to trade near 139.64 yen.
Read also:The euro jumps to its highest level in two weeks amid bullish expectations
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