Yen Under Pressure at 154, Japan's Policy Direction in the Spotlight
The Japanese yen held weak around 154 yen per dollar, near its lowest level since February, and has weakened by around 4% so far in October. Pressure stems from a combination of domestic factors: the election of pro-stimulus Prime Minister Sanae Takaichi and the Bank of Japan's decision yesterday to maintain its benchmark interest rate at 0.5% while signaling a hike could be considered if wage data supports it.
On the policy front, new Finance Minister Satsuki Katayama reiterated his stance on March's comments about the yen's "fair value" of 120–130 per dollar, as he now oversees currency policy—a statement that dampened speculation of aggressive intervention. Data also showed Tokyo's core inflation rose 2.8% year-on-year in October, above expectations, further complicating domestic policy direction. Externally, the dollar strengthened after markets trimmed expectations for another Fed rate cut, further pressuring the yen. (az)
Source: Newsmaker.id
