The Japanese yen is nearing six-month lows against the dollar following Bank of Japan (BoJ) Governor Kazuo Ueda's Christmas Day address. Ueda emphasized that monetary policy adjustments will depend on economic, price, and financial developments, alongside domestic and international risks. Key short-term concerns include Japan’s spring labor-management wage negotiations, with Ueda stating the outcome will significantly influence economic policies. Adding to the caution is political uncertainty, as Prime Minister Shigeru Ishiba’s minority government struggles to secure budget approval. Earlier market expectations of a January rate hike, once near 90%, have plummeted to 46%, with a stronger 82% likelihood for March. “Governor Ueda is keeping his options open amid uncertainties, including the yen's movements and Trump-related global risks,” noted Masato Koike, senior economist at Sompo Institute Plus. “While a January hike remains possible, a March move seems more likely.” This was Ueda’s final public speech of 2024, leaving markets in a wait-and-see mode.