The Japanese yen rose in Asian trade on Monday for the fifth straight session against the US dollar, scaling a two-week high following bullish remarks by the Bank of Japans Deputy Governor, which boosted the odds of a rate hike this year.

The gains are also boosted by higher haven demand after Moodys US credit cut, which renewed concerns about US financial stability.

The Price

The USD/JPY price fell 0.55% today to 144.80, the lowest since May 8, with a session-high at 145.45.

The yen rose 0.1% against the dollar on Friday, marking the fourth daily profit in a row, however, the yen still marked a weekly loss of 0.2% last week as global trade tensions cooled.

Aggressive Remarks

Bank of Japan Deputy Governor Shinichi Uchida said the bank will continue to raise interest rates if the economy recovers from the negative impact of US tariffs, however he still cautioned that the economic outlook remains highly uncertain.

During a Diet session, Uchida said that main inflation will likely settle near the banks 2% target as log as local economic activities pick up.

Japanese Rates

Following the remarks, the odds of a BOJ rate hike in June rose from 25% to 30%.

Now traders await important Japanese data on inflation, unemployment, and wages to gather more clues.

US Credit Rating

Moodys cut US sovereign rating by one notch on Friday, becoming the last major rating agency to do such a step.

Moodys pointed to the growing US debt burden, which reached a record $36 trillion, reflecting the structural fiscal challenges facing the worlds largest economy.

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