The yen advanced on Monday as Japan reported stronger-than-expected GDP growth, putting the currency in a favorable position. This economic boost positions the Bank of Japan to consider further rate hikes in the coming months.
The U.S. dollar, on the other hand, found itself under pressure as recent American economic data fell short of expectations, propelling traders to consider additional Federal Reserve rate cuts. Currency market dynamics are further influenced by the unfolding geopolitical situation in Ukraine.
Elsewhere, the Australian and New Zealand dollars held firm as markets prepared for imminent policy announcements. The Reserve Bank of Australia is expected to cut rates for the first time in four years, while the Reserve Bank of New Zealand is anticipated to make a similar move this week.
(With inputs from agencies.)
