The Japanese yen fell in Asian markets on Monday at the start of the weeks trading against a basket of major and minor currencies, recording its lowest level in two weeks against the US dollar, with the continued rise of the American currency in the foreign exchange market.

The decline also came after less hawkish comments from Bank of Japan Governor Kazuo Ueda, which reduced the likelihood of a rate hike in October, as investors await further evidence on the path of monetary policy normalization in the worlds fourth-largest economy.

Price Overview

Todays yen exchange rate: The dollar rose against the yen by 0.3% to 148.38, its highest since September 8, from an opening level of 147.94, with a low of 147.84.

The yen ended Fridays session slightly higher by less than 0.1% against the dollar, its first gain in three days, after the Bank of Japan meeting results were released.

US Dollar

The dollar index rose by about 0.2% on Monday, extending its gains for the fourth consecutive session, hitting a two-week high of 97.81 points, reflecting continued strength of the US currency against a basket of global currencies.

This rise came as traders reassessed near-term expectations after the Federal Reserve cut interest rates last week but signaled that further monetary easing would proceed only gradually.

Around 10 Federal Reserve officials, including Chairman Jerome Powell, are scheduled to speak this week, with investors closely watching their views on the economy and the independence of the US central bank.

Kazuo Ueda

Governor Ueda said on Friday: We must pay attention to the impact of trade policies on financial markets, foreign exchange markets, as well as on Japans economy and prices.

He added that the Bank of Japan will continue to raise interest rates if the economy and prices move in line with expectations, depending on improvements in economic and price conditions.

Commenting on the opposition of board members Hajime Takata and Naoki Tamura, who preferred a rate hike, Ueda said: the board did not agree on the proposal put forward by Takata and Tamura.

On the Federal Reserves decision, Ueda said: The Feds rate cut will support the US economy, while there is no change in the outlook for the global economy.

Japanese Interest Rates

Following Uedas comments, market pricing for a 25-basis-point hike at the October Bank of Japan meeting fell from 75% to below 50%.

To reprice those odds, investors are awaiting further data on inflation, unemployment, and wages in Japan.