According to Jinshi Data, the Japanese yen strengthened against the US dollar and other currencies in early Asian trading. The Commonwealth Bank of Australia (CBA) Global Economics and Market Research Team pointed out that the Federal Reserve and the Bank of Japan will hold monetary policy meetings this week, and the market is paying attention to the convergence of monetary policies between the two. The US dollar against the yen may fall to the year-to-date low of below 140.00.

The team expects the Bank of Japan to keep policy unchanged this week, but Governor Kazuo Ueda may leave the door open to another rate hike, perhaps as early as October. Meanwhile, the FOMC is likely to cut its policy rate by 25 basis points this week.

The dollar fell 0.2% against the yen to 140.52 yen, after hitting 140.29 on Friday, its lowest intraday level this year, according to FactSet data.