Yen Strengthens Slightly Ahead of BoJ Decision
The Japanese yen (JPY) strengthened slightly in the Asian session on Thursday, but gains remained limited as markets awaited the Bank of Japan (BoJ) policy update. Market participants are looking for signs of an interest rate hike in December or early next year, amid speculation that new Prime Minister Sanae Takaichi will promote aggressive fiscal spending and delay premature tightening. The BoJ's policy direction is expected to determine the JPY's next move.
Ahead of the central bank event, market anxiety about the crucial Trump-Xi meeting supported the yen as a safe-haven asset amid concerns about intervention. Meanwhile, the US dollar struggled to continue its post-FOMC rally, resulting in USD/JPY only managing a limited recovery from the mid-151 range—its lowest level a week earlier. The combination of BoJ caution, risk sentiment ahead of the summit, and a fading dollar rally have kept the yen's movements cautious. (az)
Source: Newsmaker.id