Dollar's Decline Against Yen

On Monday, the dollar experienced a significant drop against the yen, marking its lowest point since December 17. This decline comes in the wake of the Bank of Japan's decision to raise interest rates to 0.5% on Friday, the highest in 17 years.

Impact of US Policy Shifts

Meanwhile, the dollar's value has been further unsettled by the recent policy shifts announced by United States President Donald Trump, including threats of widespread tariffs. These developments have contributed to a volatile environment for the dollar.

Economic Indicators

Despite a slight improvement in Japan's business activity in January, the manufacturing sector has lagged behind services. In the US, both private sector performance and consumer confidence have shown signs of decline in January, adding to the dollar's challenges.

At 6:19 am ET, the dollar was trading 1.33% lower against the yen, at a rate of 153.863.