Dollar steadies, yen firms after BOJ decision as Ueda flags trade uncertainty
The dollar steadied on Tuesday while the yen strengthened marginally following the Bank of Japan's (BOJ) rate decision and remarks from Governor Kazuo Ueda, who warned in a press conference about high trade uncertainty.
The BOJ delivered little surprise to markets at the conclusion of its two-day monetary policy meeting, as it stood pat on rates and laid out a new plan to decelerate the pace of its balance sheet drawdown next year in the face of rising risks such as the Middle East conflict and U.S. tariffs.
The yen swung between losses and gains after the decision, turning negative during Ueda's press conference but by 0820 GMT was about 0.1% firmer at 144.67 per dollar.
Japanese Prime Minister Shigeru Ishiba and U.S. President Donald Trump have yet to reach a trade deal.
Elsewhere, the euro was little changed at $1.155675.
The pound was last down 0.1% against the dollar at $1.3562 . Trump signed an agreement on Monday formally lowering some tariffs on imports from Britain as the countries continue working toward a formal trade deal.
Risk sentiment remained fragile, however, with the Israel-Iran conflict entering its fifth day.
The White House said on Monday that Trump is leaving the Group of Seven summit in Canada a day early due to the situation in the Middle East, as the president has requested that the national security council be prepared in the situation room.
Trump had earlier urged everyone to immediately evacuate Tehran, and reiterated that Iran should have signed a nuclear deal with the United States.
The risk-sensitive Australian dollar was up 0.22% at $0.6539. Meanwhile, against a basket of currencies, the dollar was little changed at 98.14.
The escalations have sent the price of brent crude higher.
But it is the Federal Reserve's policy decision on Wednesday that takes centre stage. Expectations are for the central bank to keep rates on hold, though the focus will be on any guidance regarding the rate outlook.
Investors also looked ahead to other central bank decisions including from the Bank of England (BoE) and Sweden's Riksbank later this week to guide the next move in markets.
Source : Reuters
