USD/JPY dips as Fed, BoJ meetings loom amid Oil-driven risks
The post USD/JPY dips as Fed, BoJ meetings loom amid Oil-driven risks appeared on BitcoinEthereumNews.com.
USD/JPY declines on Monday, trading around 159.20 at the time of writing, down 0.33% on the day as the Japanese Yen (JPY) gains modest ground ahead of a crucial week for global central banks, with policy decisions from the Federal Reserve (Fed) and the Bank of Japan (BoJ) scheduled for Wednesday and Thursday, respectively. Markets broadly expect the Fed to keep interest rates unchanged within the current 3.50%-3.75% range on Wednesday. The recent surge in Oil prices, driven by geopolitical tensions in the Middle East and disruptions around the Strait of Hormuz, is adding to inflation concerns in the United States (US) and encouraging policymakers to maintain a cautious stance. According to the CME FedWatch tool, investors do not expect a rate cut before the October meeting. Against this backdrop, the US Dollar Index (DXY), which measures the Greenback against a basket of six major currencies, falls below the 100 level after reaching a more than nine-month high of 100.54 on Friday. Attention then turns to the Bank of Japan (BoJ), which is widely expected to keep its policy rate unchanged at 0.75% on Thursday while maintaining the option of further tightening if inflation remains persistent. Investors will closely watch comments from BoJ Governor Kazuo Ueda for clues on how higher energy prices could influence inflation dynamics and economic growth in Japan. The surge in Oil prices presents a challenge for the Japanese economy, which relies heavily on imported energy. Earlier on Monday, Japan announced it had begun releasing Oil from its strategic reserves to help meet domestic energy demand amid concerns about potential supply disruptions. Meanwhile, the Japanese Yen is also drawing support from renewed warnings by authorities regarding excessive currency moves. Finance Minister Satsuki Katayama stated that the government is closely monitoring developments in the foreign exchange market…
Filed under: News - @ March 16, 2026 5:30 pm