The weekly US dollar market report said that the dollar's decline against the yen continued ahead of this week's Federal Open Market Committee meeting and Bank of Japan monetary policy meeting. At the start of the week beginning on the 7th, speculation over an interim agreement on a route through the Strait of Hormuz led to a retreat in safe-haven dollar buying, sending dollar/yen below ¥155.
Dollar/yen extended its decline this week, standing at ¥153.61 as of 3 p.m., down ¥2.65 from the previous day. Over the week as a whole, the dollar weakened against the yen.
As a factor at the start of the week, reports emerged of speculation that Iran and Oman had reached an interim agreement on a route through the Strait of Hormuz, prompting views that safe-haven dollar buying would weaken. This led to yen strength, with dollar/yen moving below the key ¥155 level. No further report is included because the full article is for members only.
With announcements from the US FOMC and the Bank of Japan monetary policy meeting due shortly, attention in the foreign exchange market is reportedly focused on the factors informing the decisions at both meetings. No specific decisions have been announced at this point.