Investing.com - The yen traded stronger in early Asia on Monday ahead of central bank rate reviews in the U.S. and Japan this week.
USD/JPY changed hands at 111.55, down 0.15%, while AUD/USD traded at 0.7706, down 0.04%.
In Japan, the corporate services price index rose 0.2% as expected year-on-year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 95.11.
In the week ahead, investors will focus on the outcome of Wednesday’s Fed meeting for clues on the path of future interest rate increases.
The BoJ’s rate statement on Thursday will also be closely watched.
On Monday, markets in Australia will remain closed for the Anzac day holiday.
Last week, the yen fell to its lowest level in three weeks against the dollar on Friday amid speculation that the Bank of Japan could step up monetary easing measures at its upcoming policy review.
The drop in the yen came after Bloomberg reported that the BoJ could expand the negative interest rate policy it put in place in January at the conclusion of its upcoming rate review on Thursday.
The yen had rallied to 11-month highs against the dollar this month, in part on expectations that Japanese officials would hold off taking steps to weaken the currency.
The yen, which tends to gain in times of market turmoil, has strengthened broadly since the start of the year as commodity and equity markets struggled, boosting investor appetite for safe haven assets.
Demand for the dollar continued to be underpinned by the view that the Federal Reserve could raise interest rates sooner than expected.