TOKYO — Currency traders are closely watching the Bank of Japan (BOJ) and the U.S. Federal Reserve (Fed) meetings this week, despite a low probability of interest rate increases. Market participants are paying particular attention to the tone of the central banks' news conferences, which are expected to influence monetary policy expectations amid a market increasingly sensitive to interest rate trends.

After a period when fiscal policy dominated market focus, attention has now returned to the interest rate spread between the yen and the dollar. Traders are also observing whether the yen will weaken further against the dollar.

(Photo by Akira Kodaka)

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