FX.co ★ Yen Nears Ten-Month Low

The Japanese yen was trading around 155.2 per dollar, nearing its lowest point in nearly ten months as anticipation builds for a pivotal meeting between Prime Minister Sanae Takaichi and Bank of Japan (BOJ) Governor Kazuo Ueda. Market participants are eager for indicators on the BOJ's forthcoming strategies and how officials might address the yen's downward pressure, amidst expectations that Takaichi will push for a prudent approach to interest rate increases and propose a more substantial fiscal package than previously anticipated. This meeting comes on the heels of data revealing that Japan's economy contracted by 1.8% on an annualized basis over the summer, marking the first decline in six quarters, influenced by stringent construction regulations and U.S. tariffs. While some economists contend that the headline figures may overstate the downturn, the report is poised to bolster Takaichi's determination to implement aggressive stimulus measures. Additionally, Finance Minister Satsuki Katayama expressed concerns about the yen's steep and unbalanced movements, citing potential negative impacts on Japan's broader economic landscape.