Japanese Yen Edges Higher on Dollar Weakness
The yen firmed toward 147.5 per dollar on Tuesday, rebounding from two-week lows as the greenback softened while investors reassessed the Federal Reserve’s policy outlook. Political uncertainty in the US also pressured the dollar, with congressional funding talks this week to avoid a September 30 shutdown adding to market jitters.
Domestically, the Bank of Japan held its policy rate at 0.5% for a fifth straight meeting on Friday, as expected. The central bank said the economy is recovering moderately but highlighted areas of weakness and risks from global trade policies.
It also unanimously agreed to begin selling ETF and J-REIT holdings, hinting at a gradual shift in asset support. Looking ahead, traders await Japan’s latest PMI and Tokyo inflation data, alongside minutes from the BOJ’s July meeting, for further clues on the policy path.
Source: Tradingeconomics.com
