The Japanese yen fell in European trade on Tuesday on track for the third loss in a row against the dollar ahead of the Bank of Japan’s policy meeting later today.

The BOJ is expected to maintain interest rates unchanged as concerns grow about outside economic risks.

The Price

The USD/JPY pair rose 0.4% today to 149.78 yen per dollar, the highest since March 5, with a session-low at 149.10.

The yen lost 0.4% on Monday, the second loss in a row amid an improving risk appetite in the markets.

The BOJ

Later today, the BOJ will convene with the decision due tomorrow, expected to hold rates at 0.5%, the highest since 2008.

BOJ policymakers will discuss the impact of the US trade war on Japan’s export based economy, which will determine the timing of the next interest rate hike.

Concerns about a global economic slowdown prompted by US President Trump’s tariffs could weigh on Japanese wages and consumer prices, which are approaching the 2% target.

BOJ Governor Kazuo Ueda stated ahead of the Diet last week that he expects a revival in consumption, but he remains very concerned about outside economic uncertainty. 

Reuters reported that BOJ policymakers believe the economy is on the right track but global economic uncertainties could impact the timing of the next BOJ rate hike.

Japanese Yields 

Japan’s 10-year government treasury yields fell 0.75% today to a week low at 1.495%, pressuring the yen.

It comes amid an improving risk appetite in the markets, while the odds of a Japanese interest rate hike in the first half of the year receded. 

Ethereum rose on Monday as markets follow the latest geopolitical developments in the Middle East and their impact on high-risk assets such as cryptocurrencies. 

US President Donald Trump said Iran will carry the responsibility of any attack made by Yemen’s Houthi group.

He asserted the US army will expand its biggest military operation in the Middle East since his return to the White House.

Earlier US data showed retail sales rose 0.2% m/m in February to $722.7 billion.

Analysts now expect the Federal Reserve to hold interest rates unchanged at this week’s policy meeting.

However, the Fed will release its outlook and forecasts, important for gauging the likely impact of Trump’s policies.

Investors worldwide continue to be concerned about the impact of the global trade wars on businesses and profits.

Ethereum

On trading, ethereum rose 2.5% on Coinmarketcap as of 20:20 GMT to $1936.2.

The Australian dollar rose against most major rivals as the risk appetite improved and demand on commodity currencies rallied.

On trading, the AUD/USD pair rose 1% as of 20:07 GMT to 0.6386.

Loonie

The Canadian dollar rose 0.6% against its US counterpart as of 20:07 GMT to 0.700.

US Dollar

The dollar index fell 0.3% as of 19:38 GMT to 103.4, with a session-low at 103.3.

Earlier US data showed retail sales rose 0.2% m/m in February to $722.7 billion.

Analysts now expect the Federal Reserve to hold interest rates unchanged at this week’s policy meeting.

However, the Fed will release its outlook and forecasts, important for gauging the likely impact of Trump’s policies.

Investors worldwide continue to be concerned about the impact of the global trade wars on businesses and profits.

Gold prices rose on Monday as the dollar fell against most major rivals, with the precious metals hitting fresh record highs above $3000.

Earlier US data showed retail sales rose 0.2% m/m in February to $722.7 billion.

Analysts now expect the Federal Reserve to hold interest rates unchanged at this week’s policy meeting.

However, the Fed will release its outlook and forecasts, important for gauging the likely impact of Trump’s policies.

Investors worldwide continue to be concerned about the impact of the global trade wars on businesses and profits.

Otherwise, the dollar index fell 0.3% as of 19:38 GMT to 103.4, with a session-low at 103.3.

Gold spot prices rose 0.2% as of 19:39 GMT to $3006.8 an ounce.