The dollar experienced a decline against the yen on Friday, reflecting market unease regarding the Federal Reserve’s upcoming policy decisions. Recent economic indicators have presented a mixed picture, fueling speculation about whether the Fed will continue its current course of monetary stimulus or begin to taper its asset purchases.

Analysts suggest that the lack of clear direction from the Fed is contributing to the dollar’s weakness. Investors are hesitant to take strong positions in the currency market until there is greater clarity on the central bank’s intentions.

The yen, often seen as a safe-haven currency, has benefited from this uncertainty. As investors reduce their exposure to riskier assets, demand for the yen typically increases, leading to its appreciation against other currencies.

Market participants will be closely watching upcoming economic data releases and any statements from Fed officials for clues about the future direction of monetary policy. The dollar’s performance in the coming weeks will likely be heavily influenced by these developments.