Exceeding the 2% inflation target has prompted the Bank of Japan (BoJ) to signal a possible shift to negative interest rate policy in the coming months. BoJ Governor Haruhiko Kuroda stated on Friday that the central bank is considering whether to maintain interest rates or not.

The significantly weakened yen may lead to exchange rate interventions from Japan. Finance Minister Taro Aso believes that while a weak yen has both advantages and disadvantages, he remains concerned about the potential downsides of excessive depreciation.

Federal Reserve Chairman Jerome Powell has not shown indications of an imminent interest rate cut. Investors anticipate the first 25 bps rate cut to occur in June. Additionally, Wednesday's FOMC meeting may discuss further monetary policy following lower-than-expected US inflation rates.