Dollar Slides: JPY Takes Center Stage in North American FX Session

The North American foreign exchange (FX) session began with the dollar under pressure, notably against the Japanese yen. The USDJPY dropped 1.15%, leading declines among major currencies, driven by expectations of a BOJ rate hike, narrowing interest rate spreads, and concerns over potential intervention in the market. Technical factors also played a role as support broke at 155.15, pushing the dollar lower towards levels around 154.00. Despite this, European currencies showed modest losses with euro down -0.10% and sterling -0.12%, reflecting thinner liquidity due to U.S. Labor Day holiday market closure. Geopolitical tensions in the Middle East also added volatility as incidents between the United States and Iran pushed oil prices higher, highlighting the interconnectedness of monetary decisions and global markets.