The Japanese Yen extends losses despite the hawkish sentiment surrounding BoJ’s policy stance for next week.

Japan’s Prime Minister Fumio Kishida stated that normalizing the BoJ’s monetary policy would help support a growth-driven economy.

US President Joe Biden abandoned his re-election bid and endorsed Vice President Kamala Harris to face Republican Donald Trump.

The Japanese Yen (JPY) remains weak on Monday, extending its losing streak to a third consecutive session. Traders are gearing up for the Bank of Japan’s (BoJ) policy meeting next week, where an interest rate hike might be on the table to support the JPY. Japan’s Prime Minister Fumio Kishida stated that normalizing the central bank’s monetary policy would aid Japan's shift to a growth-driven economy, according to Nikkei Asia. Speculative short positions in the Yen, which had risen to their second-highest level, have started to decline following Japan's suspected Yen-buying intervention this month, which surprised the market. As of Tuesday, Yen short positions held by market players such as hedge funds totaled a net 151,072 contracts, according to the US Commodity Futures Trading Commission. This marks a decrease of 30,961 contracts from the previous week and is the largest drop since May 7, when short positions fell by 33,466 contracts, according to another report by Nikkei Asia.