Dollar Ascends Amid Uncertain Japanese Monetary Policy

The dollar strengthened against the yen as Japan's central bank suggested further policy tightening, though no specific timing was mentioned. This uncertainty maintained market speculation over interest rate hikes, while U.S. economic outlook and political shifts continue to influence investor sentiment.

The U.S. dollar gained ground against the yen on Monday following signals from Japan's top central banker about potential policy tightening. However, Bank of Japan Governor Kazuo Ueda did not specify a timeline, leaving the market unclear about whether changes might occur next month.

Ueda's comments maintained a market assumption of a 54% chance for a quarter-point hike in December's policy meeting. This hesitation resulted in a slight increase of 0.6% in the dollar, moving it away from the previous low against the yen.

With the U.S. presidential election influencing economic forecasts, investors await Trump's key appointments, weighing potential tariff policies and economic performance against global peers, which could impact upcoming Federal Reserve decisions on interest rates.

(With inputs from agencies.)