The Japanese yen rose in Asian markets on Tuesday against a basket of major and minor currencies, extending gains for the second consecutive day versus the U.S. dollar and reaching its highest level in a week. The yen was supported by ongoing selling of the U.S. currency as Donald Trump continued to pressure the Federal Reserve for deeper interest rate cuts.

The Bank of Japan meets on Thursday and Friday to discuss monetary policy for the worlds fourth-largest economy, with expectations that rates will remain unchanged for the fifth consecutive meeting.

Price Overview

The dollar fell 0.25% against the yen to 146.99, its lowest since September 9, down from the opening at 147.35, after touching a high of 147.54.

The yen ended Monday up 0.2% versus the dollar, its second gain in three sessions, on rising expectations of U.S. rate cuts.

U.S. Dollar

The dollar index fell 0.2% on Tuesday, extending losses for the second session and hitting a two-month low at 97.16, reflecting the continued decline of the U.S. currency against a basket of global peers.

This drop is attributed to active selling ahead of an expected Fed decision on Wednesday to cut interest rates by 25 basis points.

Meanwhile, U.S. President Donald Trump intensified pressure on Fed policymakers, calling on Chair Jerome Powell in a Monday social media post to deliver a larger rate cut, citing risks in the U.S. housing market.

Bank of Japan

The central bank will convene Thursday to discuss policy for the worlds fourth-largest economy, with decisions due Friday.

Current pricing suggests a roughly 20% chance of a 25-basis-point rate hike.

With expectations firmly anchored on no change for a fifth straight meeting, attention will also be on Governor Kazuo Uedas comments about the future policy path.