Commerzbank expects movements in the dollar-yen in light of recent developments in monetary policy.

Foreign exchange market analyst at Commerzbank, Volkmar Power, provided his expectations regarding the performance of the dollar-yen currency pair in the upcoming period, after the Bank of Japan decided in its last meeting of the year to keep interest rates unchanged at 0.25%, in addition to the significant interest rate cuts in the United States.

In this regard, he explained that in light of the statements issued by the Bank of Japan in recent weeks, it has become highly unlikely to raise interest rates in the near term, which has already affected the dollar-yen pair. Therefore, the greater focus is on the Bank of Japan's meeting in January, which may have an impact on the upcoming trading of the dollar-yen.

Moreover, the monetary policy summary did not reveal any major surprises; however, there is one notable statement, where the Bank of Japan mentioned that it is desirable to implement monetary policy in a way that does not lead to interest rates reaching the zero lower bound.