By Rae Wee
SINGAPORE (Reuters) - The yen was on track for its best monthly start to the year since 2018 on Friday, helped by the view that the Bank of Japan (BOJ) is likely to keep raising rates this year while its global peers elsewhere look to ease policy.
The Mexican peso and Canadian dollar were on guard ahead of a looming Feb. 1 deadline which U.S. President Donald Trump has said would be the date he imposes 25% tariffs on imports from the two countries.
The loonie languished near a five-year low at C$1.4490 and was set for a weekly decline of 1%.
Mexico's peso was recovering from its steep fall from the previous session and last stood at 20.6849 per dollar, though it remained on track for its worst weekly performance since October with a roughly 2% fall.
"If (Trump) wants to talk tough, he's got to act tough as well, and that starts with actually announcing something concrete tomorrow," said Tony Sycamore, a market analyst at IG.
"It's something which I think is coming and more than likely we'll get some more colour on that tomorrow ... It's not good to keep the uncertainty overhanging markets."
In Japan, the yen was last a touch stronger at 154.19 per dollar, having already climbed more than 1% for the week thus far. It was set to gain 1.9% for the month, which would mark its best January performance in seven years.
The yen has drawn support from expectations of further rate hikes from the BOJ this year, with Deputy Governor Ryozo Himino also saying on Thursday that the central bank will continue to raise interest rates if the economy and prices move in line with the bank's forecasts.