Japanese Yen gains against its peers after BoJ holds interest rates steady at 0.75%.

• The Japanese Yen rises against its peers after the BoJ leaves interest rates unchanged at 0.75% for the third meeting in a row.
• BoJ’s Ueda is expected to leave the door open for interest rate hikes in his press conference.
• The Fed is expected to maintain the status quo on Wednesday.

The Japanese Yen (JPY) attracts bids against its major currency peers, with the USD/JPY pair sliding to near 159.25, after the Bank of Japan’s (BoJ) monetary policy announcement. The BoJ has left interest rates unchanged at 0.75% for the third meeting in a row.

The Japanese central bank was already expected to leave interest rates unchanged, as Middle East conflicts have raised economic concerns.

Meanwhile, investors await BoJ Governor Kazuo Ueda’s press conference, which is scheduled at 06:30 GMT. BoJ’s Ueda is expected to reiterate that the monetary policy path will remain gradually upwards, and inflationary pressures should arise from economic growth rather than the energy crisis.

Going forward, the US Dollar will be influenced by the Federal Reserve’s (Fed) monetary policy announcement on Wednesday, in which it is expected to leave interest rates unchanged in the range of 3.50%-3.75% for the third time in a row.

In the monetary policy statement, the Fed is expected to warn of upside inflation and downside economic risks in the wake of elevated oil prices amid the Middle East war.

On the geopolitical front, White House press secretary Karoline Leavitt has stated that US President Donald Trump discussed Iran’s proposal with the national security team, which calls for the reopening of the Strait of Hormuz and a permanent ceasefire. Leavitt didn’t reveal any information regarding the odds of whether it will be taken forward by Washington.