Investing.com - The yen weakened on Monday in Asia after remarks from the central bank governor updating on economic growth and inflation.
Bank of Japan Governor Haruhiko Kuroda said the economy is on a likely moderate expanding trend with core consumer prices slightly negative to flat, adding that the central bank will take further action to boost growth if needed.
USD/JPY changed hands at 104.23, up 0.07%, while AUD/USD traded at 0.7597, down 0.26%. GBP/USD traded down 0.16% to 1.2168.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.06% to 98.14.
This week will see the European Central Bank’s post policy meeting press conference on Thursday amid speculation over whether it will further expand its stimulus program in the face of sluggish growth and inflation. Also on the watchlist are Chinese figures on third quarter GDP, due for release on Wednesday, with the rate of growth expected to ease again.
This coming Friday, U.S. Federal Reserve Chair Janet Yellen will give a speech. On Friday last week, Yellen suggested the Fed may need to run a "high-pressure" economy in order to reverse damage from the global financial crisis that depressed output, raising questions about long-term policy though not investor views the Fed is likely to raise interest rates in December.
On Monday, the euro zone is to publish revised data on inflation. and the U.S. will report industrial production and manufacturing activity in the New York region. Among policymakers, ECB President Mario Draghi will speak at an event in Frankfurt and Fed Vice-Chair Stanley Fischer will speak in New York.
Last week, the dollar gained ground on Friday as solid data on U.S. retail sales and producer prices bolstered expectations that the Federal Reserve could raise interest rates in the coming months.
U.S. retail sales rose 0.6% in September after declining 0.2% the previous month, data from the Commerce Department showed Friday.
Another report showing that U.S. producer prices picked up broadly last month added to the view that the economy is on a strong enough footing for a rate hike by the Fed before the year’s end.
The reports came after the minutes of the Fed’s September meeting, published on Wednesday, showed several officials believed it would be appropriate to raise interest rates "relatively soon" if the economy continued to improve.
The U.S. central bank raised rates for the first time in almost a decade in December, but rates have remained on hold since then amid concerns over sluggish inflation.
The Fed’s next meeting is in November, but a rate hike ahead of the presidential election is seen as unlikely.
Expectations for higher rates typically boost the dollar by making it more attractive to yield seeking investors.
Investors currently price a 69.5% chance of a rate hike at the Fed's December meeting; according to federal funds futures tracked Investing.com's Fed Rate Monitor Tool.