The Japanese Yen (JPY) reverses a modest Asian session downtick against a broadly weaker US Dollar (USD) and touches a fresh monthly high during the Asian session on Monday. Japan's Prime Minister Shigeru Ishiba said on Sunday that he aims to achieve a trade agreement with the US during the Group of Seven (G7) summit on June 15. This comes on top of the growing acceptance that the Bank of Japan (BoJ) will continue raising interest rates and act as a tailwind for the JPY.
Apart from this, rising geopolitical risks stemming from the protracted Russia-Ukraine war and conflicts in the Middle East turn out to be another factor benefiting the JPY's relative safe-haven status against its American counterpart. Meanwhile, concerns about rising US fiscal deficit and expectations that the Federal Reserve (Fed) will eventually step in to support economic growth drag the USD to a near one-month low. This further contributes to the USD/JPY pair's slide.
