The USD/JPY currency pair surged to a 40-year high close to 162.84 yen before settling around the 162.00 level, showing minor fluctuations in early trading, according to FX Street (BBH).
On Monday, the pair retreated slightly from session highs near 162.40 yen to just below 162.00 yen, as reported by FX Street. Meanwhile, United Overseas Bank noted the pair climbed to 162.42 yen before closing at 162.08 yen, with expectations for consolidation between 161.50 yen and 162.45 yen.
This sustained strength in the US dollar against the Japanese yen comes amid ongoing market attention to Japanese authorities' policy stance, which continues to influence FX dynamics in the region.