Ella 
The Japanese Yen (JPY) reversed a slight decline in the Asian session and hit a new monthly high in the Asian session on Monday against the backdrop of an overall weaker US dollar (USD). Japanese Prime Minister Shigeru Ishiba said on Sunday that he hopes to reach a trade deal with the United States at the Group of Seven (G7) summit on June 15. This is combined with the growing acceptance that the Bank of Japan (BoJ) will continue to raise interest rates and provide support for the Japanese Yen.
In addition, geopolitical risks stemming from the ongoing Russia-Ukraine war and conflicts in the Middle East have also become another favorable factor for the Japanese Yen’s relative safe-haven status. At the same time, concerns about rising US fiscal deficits and expectations that the Federal Reserve will eventually step in to support economic growth have pushed the US dollar to a near one-month low. This has further led to a slide in USD/JPY.
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