The Japanese yen eased against the US dollar on Tuesday, further eroding last week’s safe-haven gains, underpinned by a risk-on mood and ​a weaker euro ahead of key central bank meetings this week that will influence the global rates outlook.

The yen ‌was 0.16% weaker at 157.73 per dollar, inching further away from the one-month high it touched last week ahead of the Bank of Japan policy decision later this week. The yen had lost ground on Monday too.

The BOJ is set to keep interest rates steady at 1.25% in a two-day meeting concluding on Friday, ​but signal its readiness to continue raising borrowing costs on mounting price pressures.

A key gauge of Japan’s service-sector inflation rose 3.7% ​in September from a year earlier, data showed on Tuesday, a sign of increasing price pressures that ⁠will likely keep the central bank on track for further interest rate hikes.

“We expect the BOJ will conclude that the underlying rate of ​consumer price inflation is at a level generally consistent with the 2% price stability target,” analysts at MUFG said in a note.

However, simply ​touching the target once is not enough, the analysts said, adding that the BOJ will now shift from a focus on the downside risks to inflation to a stance of monitoring risks in both directions.

The yen was among the best-performing major currencies last week, as AI jitters in the equity market spurred a ​haven rush into the currency.

Markets price slightly better-than-even odds of a December BOJ hike, so there is plenty of room for a ​rebound in the yen should Governor Ueda strike a hawkish note, said Ebury analysts in a note.

“We still favour another hike at the last meeting of ‌the ⁠year, though whether the BOJ will be prepared to commit to that just yet is unclear.”

Apart from the BOJ, four other major central banks will announce policy decisions this week. The BOJ’s meeting follows that of the Fed, which is seen skipping a hike at its two-day meeting concluding on Wednesday.

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The European Central Bank is also set to keep rates unchanged at 2.5% on Thursday. New Zealand’s and Canada’s central ​banks are expected to raise rates ​this week.

DOLLAR FIRMS ON RISK-APPETITE ⁠REVIVAL

The dollar index held steady near a one-week high on Tuesday at 102.04 as a tech-led rebound on Wall Street revived appetite for risk, while investors await megacap earnings and the US midterm elections.

Risk ​appetite returned overnight after Anthropic’s IPO filing and Meta’s (META.O), opens new tab $95 billion equity plan rekindled the artificial intelligence trade.

The ​dollar was also ⁠underpinned by a weaker euro , which fell to a near two-week low against the greenback as worries over France’s fiscal health piled pressure on the single currency. The euro last fetched $1.1165, down about 1.4% this month.

A selloff in French government bonds that drove the country’s debt-risk premium to ⁠its highest ​since the 2011 sovereign debt crisis has rekindled concerns about financial stress across the ​euro zone.

The Brazilian real stabilised after it fell sharply against the US dollar after President Luiz Inacio Lula da Silva won a historic fourth term on Sunday against Senator Flavio ​Bolsonaro, the eldest son of former President Jair Bolsonaro. 

The Azad Jammu and Kashmir (AJK) cabinet in its second meeting considered 19 agenda items and majority of them were accepted.

Government officials said the cabinet approved the setting up of special courts for Kashmiris abroad and earmarking two per cent of the budget for promoting sports. It also okayed the establishment of centers of excellence for gemstones to develop the sector for precious stones.

The government’s 100-day agenda is to be unveiled soon. The scheme seeks to upgrade two basic health units and one rural health center in each district.

The proposal also includes constructing up catheterisation laboratories in Bhimber, Kotli and Rawalakot and two stroke centers across Azad Kashmir.

The cabinet also approved financial aid to clear pension-related concerns of the retired personnel of the local government agencies. It also approved unification of administrative structures of State Disaster Management Authority (SDMA) and State Earthquake Reconstruction and Rehabilitation Authority (SERRA).

The government ministers also added that initiatives like Dhee Rani Program, Suthra Kashmir Program, Himmat Card, Clinic on Wheels and IT digitalisation projects would also be launched shortly.

Special focus would be paid to the promotion of tourism and enhancement of the capability of government institutions, they said.

Judicial Commission member Ahsan Bhoon has moved a Rs5 billion defamation complaint against Captain (retd) Muhammad Safdar before Punjab Defamation Tribunal.

The tribunal concluded that the complaint was maintainable and issued a notice to Captain Safdar, summoning him on November 11, 2026.

Bhoon, in his appeal, said that Captain Safdar made defamatory statements about his degree in law and his professional ability to practise law in television interviews and social media.

The claim says Bhoon got his law degree from the University of the Punjab and the qualification has been certified by the necessary authorities.

The petitioner claimed that the purported words had harmed his professional reputation and ruined his decades-long legal career.

Bhoon has sought direction from the tribunal for Captain Safdar to pay Rs1 billion as general damages, Rs2 billion as special damages and Rs2 billion as punitive damages, aggregating to Rs5 billion.

He has also sought an order requiring Captain Safdar to withdraw the purported utterances, make an unreserved apologies and not make similar statements in future.