Comments from Japan’s Prime Minister Shigeru Ishiba on current monetary policy, along with a decline in household spending, have caused investors to lose confidence in the Bank of Japan’s plan to raise interest rates, which has directly impacted the yen negatively.

U.S. economic data reported that core inflation, which excludes food and energy prices, slightly increased to 3.3%, while overall inflation rose to 2.4%. This has contributed to the recent strengthening of the U.S. dollar.

As for the Federal Reserve, despite signaling potential interest rate adjustments amid signs of a slowdown in the labor market, investors are still awaiting the U.S. Producer Price Index (PPI) announcement on Friday. This will help shape the outlook on the Federal Reserve's future interest rate cuts.

Source: Fxstreet