Japanese Yen Calms Ahead of BoJ Decision
The Japanese yen halted its previous decline against the US dollar in Thursday's trading, moving within a relatively narrow range. Although the US dollar recovered, the yen showed signs of strengthening due to expectations of a Bank of Japan (BoJ) interest rate hike this week. However, traders remained cautious, awaiting further guidance from the BoJ regarding its future policy direction.
The market's primary focus now turns to the BoJ's interest rate decision scheduled for Friday, along with Governor Kazuo Ueda's press conference. Ahead of these events, some position adjustments are likely to trigger yen volatility. Concerns about Japan's fiscal condition are also keeping market participants cautious.
The BoJ's hawkish stance contrasts with the US Federal Reserve, whose speculation of a rate cut has curbed the dollar's strength. Furthermore, weak equity market sentiment keeps the yen in demand as a safe-haven asset, limiting the risk of significant depreciation. Investors are choosing to wait for the official BoJ decision before making any major moves. (az)
Source: Newsmaker.id
