The Japanese yen attempts to recover ahead of the G20 meeting

• The Japanese currency holds above its lowest level in 4 weeks

• BPS: recent yen moves were largely confined

• Japanese retail sales rise exceeds expectations in July

• Probability of raising Japanese interest rates in September increases

The Japanese yen rose in the Asian market on Monday against a basket of major and minor currencies, as it attempts to recover from its lowest level in four weeks against the US dollar, on its way to achieving its first gain in the last six days, thanks to buying activity from low levels.

Markets are turning their attention to the meeting of finance ministers and central bank governors of the G20, which the United States will host on Monday and Tuesday. Amid wide anticipation of what may result from positions and coordination on global economic and monetary developments.

Data released today in Tokyo showed retail sales in July exceeded expectations, the latest indicator of the expansion of the Japanese economy in the third quarter of this year, which enhances the likelihood of raising Japanese interest rates in September.

Markets also await any signals from Japanese and American officials on monetary policy, exchange rates, and limits on unwanted currency movements, as these have direct implications for the dollar against the yen and for investor sentiment in global currency markets.

These data show that the Japanese economy continues to grow at a strong pace in the third quarter of this year, reflecting a noticeable improvement in economic activity, which may give BOJ officials more room to move forward with a path of monetary policy normalization.