Japanese Yen Volatility Reflects Policy Caution and Market Sensitivity

The Japanese yen fluctuated near 155.6 per dollar amid mixed signals on monetary policy. Prime Minister Sanae Takaichi expressed concerns about further interest rate hikes during a meeting with the Bank of Japan governor, suggesting caution in policy moves. This contributed to yen volatility, with the currency weakening to a two-week low before stabilizing. Market attention also focused on a weaker US dollar following President Trump's State of the Union address and ongoing trade developments, influencing currency sentiment.