Japanese Yen Hits Multi-day High Against U.S. Dollar Before BoJ Decision

(RTTNews) - The Japanese yen touched a multi-day high against the U.S. dollar on Monday, on expectations that the Bank of Japan may consider a shift in monetary policy goals amid rising inflation pressures.

The Kyodo News agency reported on Saturday that the BoJ is looking to revise its joint statement with the government that the central bank is committed to achieve its 2 percent inflation target as soon as possible.

Former deputy governor Hirohide Yamaguchi said that the BoJ must shift to a flexible policy framework and consider raising its long-term interest rate target next year amid a spike in price pressures.

However, Japanese Chief Cabinet Secretary Hirokazu Matsuno dismissed media reports that the government is set to revise its joint statement with the BoJ on the inflation goal.

The BOJ is widely expected to maintain ultra-low interest rates when it ends its two-day meeting on Tuesday.

The yen was higher against the greenback, at a 4-day high of 135.75. The currency is poised to find resistance around the 132.00 level.

The yen was trading at 146.40 against the franc, off its Asian session's 4-day high of 145.43. The yen is likely to face support around the 149.00 level.

The yen appreciated to a 2-week high of 165.09 against the pound in the previous session, but it has since eased to 166.39. The yen is seen finding support around the 168.00 level.

Although the yen firmed to a 5-day high of 143.86 against the euro in the previous session, it reversed the course in subsequent deals. The pair was trading at 144.76 around 4:50 am ET.

Looking ahead, Canada industrial product price index for October and U.S. NAHB housing market index for December will be released in the New York session.