US FX WRAP: DXY gains on JPY weakness following Takaichi expressing doubts to the BoJ over more rate hikes

The DXY's gain reflects JPY weakness, triggered by Takaichi's skepticism towards the BoJ's rate hike trajectory.

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US FX WRAP: DXY gains on JPY weakness following Takaichi expressing doubts to the BoJ over more rate hikes

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Context

This situation suggests a potential divergence in monetary policy between the Fed and the BoJ, which could further affect USD/JPY flows and broader market sentiment around risk assets.

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