Bank of Japan Governor Kazuo Ueda stated on Friday that the central bank might raise interest rates further if the economic outlook worsens. July's inflation data (CPI) remains at its highest level since February.

The U.S. dollar weakened as the likelihood of a Federal Reserve rate cut in September increased. Fed Chair Jerome Powell hinted at the possibility of monetary policy changes during the Jackson Hole symposium, though he did not specify when or by how much the rate might be reduced.

Investors anticipate that the U.S. central bank might lower interest rates by at least 25 basis points in September. The FedWatch tool indicates that the market is fully pricing in a rate cut by the Federal Reserve at the September meeting.

Source: Fxstreet