The Japanese yen firmed on Monday as investors positioned themselves ahead of a packed week of central bank decisions, with the Bank of Japan’s upcoming policy meeting drawing particular attention. The currency advanced about 0.5% to around 155.08 per U.S. dollar.
The BOJ noted that most companies expect wage growth in fiscal year 2026 to remain broadly in line with this year’s levels—a signal interpreted by markets as support for an imminent rate hike. Adding to expectations, Bloomberg reported that the BOJ may begin selling its ETF holdings as early as January, while a separate survey showed business sentiment among Japanese manufacturers climbing to a four-year high.
Markets widely anticipate a rate hike from the BOJ later this week, and investors will closely watch comments from Governor Kazuo Ueda for clues on the future pace of policy tightening. Meanwhile, the New Zealand dollar strengthened after the RBNZ pushed back against market expectations for a rate increase next year, prompting traders to reassess policy trajectories across the region.