Yen Strengthens, When Will the BOJ Move?
The yen traded near 153 per dollar on Friday (November 7), maintaining the previous session's gains. A global risk-off trend—triggered by concerns about overvalued AI stocks—boosted demand for safe-haven assets like the yen. The US dollar also weakened after signs of a cooling US labor market, strengthening expectations of an imminent Fed rate cut.
Domestically, Japanese data was mixed. Household spending rose 1.8% in September, slowing from 2.3% in August and below the 2.5% forecast. Nominal wages grew 1.9% (vs. 1.5% the previous month) supported by stable base salaries and moderate overtime, but fell short of inflation: real wages still fell 1.4% year-on-year—the ninth consecutive decline.
Looking ahead, Bank of Japan policy remains key. Governor Kazuo Ueda emphasized that the 2026 wage outlook will be crucial in determining the timing of further tightening, after the BOJ returned to policy on hold last week. As long as real wages haven't recovered, the yen could remain supported by safe-haven sentiment, but long-term fundamentals still await strong signals from the labor market. (az)
Source: Newsmaker.id
