Yen Surges as Fed, ECB, and BoJ Prepare to Meet

The Japanese yen extended its rally on Monday, while the U.S. dollar and the euro traded nearly flat. Investors are waiting for key interest rate decisions from three major central banks this week. The Federal Reserve, the European Central Bank, and the Bank of Japan will all hold policy meetings in the coming days. Markets expect each to signal its next move on interest rates. The yen has gained ground as traders bet the Bank of Japan may shift away from its long-standing policy of ultra-low rates. That policy has kept the yen weak for years. The dollar and euro showed little movement as investors held positions ahead of the meetings. Many chose to wait rather than trade on uncertain news. Rate decisions from these three banks often move global currency markets. A single change in tone can shift billions of dollars in seconds. Traders will watch each announcement closely for hints on inflation, growth, and the path of future rate hikes or cuts.