The Japanese yen appreciated slightly last week, as investors remained uncertain about the Bank of Japan’s potential rate hikes despite rising inflation.

There is also speculation that the Federal Reserve is likely to ease its policies less, along with concerns over increasing deficit spending following the U.S. presidential election on November 5, which has led to higher U.S. bond yields.

However, despite the U.S. economy continuing to show strength, investors still firmly believe that the Federal Reserve will reduce interest rates at least one more time before the end of this year.

Source: Fxstreet