Japanese Yen holds ground despite increasing doubts over BoJ rate hikes

• The Japanese Yen may struggle as the BoJ appears to be in no rush to raise interest rates.
• Japan’s Finance Minister Suzuki has expressed his expectation that the BoJ will adopt appropriate monetary policy measures.
• Minneapolis Fed President Neel Kashkari believes there should be and will be additional interest rate cuts in 2024.

The Japanese Yen (JPY) remains steady against the US Dollar (USD) on Tuesday. However, it faces downward pressure amid increasing concerns that the Bank of Japan (BoJ) is not hurrying to raise interest rates. Following the BoJ’s policy decision on Friday, Governor Kazuo Ueda noted that although Japan’s economy is experiencing moderate recovery, signs of underlying weakness persist.

Japan’s Finance Minister Shunichi Suzuki stated on Tuesday that he is “monitoring the impacts of central banks’ monetary policies.” Suzuki expressed his expectation that the Bank of Japan will implement appropriate monetary policy measures while maintaining close coordination with the government.