Currency Market Reacts to BOJ's Remarks, Dollar Prepares for US Inflation

The Japanese yen strengthened against the US dollar after comments from Bank of Japan Governor Kazuo Ueda suggested a potential shift away from the negative interest rate policy. Meanwhile, the dollar weakened ahead of US inflation data, with the Federal Reserve expected to pause interest rate hikes at its upcoming policy meeting. The yen has been under pressure due to the BOJ's dovish stance compared to other central banks. Traders are watching for signs of intervention from Japan as the yen weakened past the 145 per dollar threshold.