The Japanese Yen (JPY) remained strong against the US Dollar (USD) on Monday. The USD/JPY pair remained subdued as the Japanese Yen (JPY) strengthened on the possibility of the Bank of Japan (BOJ) raising interest rates in January following the release of the Tokyo Consumer Price Index (CPI) inflation data last week.

Japan's Jibun Bank Manufacturing PMI came in at 49.6 in December, slightly beating the preliminary estimate of 49.5 and improving from 49.0 in November.

While marking the highest level since September, it still signaled a decline in factory activity for the sixth straight month

The Nikkei 225 fell to around 39,950 on Monday, ending a two-day winning streak.

The decline came after a slight decline in US futures, following a Wall Street slump on Friday driven by rising Treasury yields and indications of more restrained interest rate cuts in 2025.

Source: FXStreet