FX.co ★ Japanese Yen Weakens as Dollar Rebounds

The yen slipped past 147 per dollar on Thursday, pulling back from a two-month peak reached in the prior session as the dollar gained strength following the Federal Reserve's recent policy decision. On Wednesday, the Fed enacted a quarter-point rate cut, as widely anticipated, while signaling plans for two additional reductions this year but only one in 2026. This stance countered expectations of two or three cuts in the coming year. Domestically, the Bank of Japan commenced its two-day policy meeting, with rates anticipated to remain unchanged while officials evaluate the impact of U.S. tariffs on Japan's export-focused economy. Nonetheless, analysts observed that the BOJ might consider a 25 basis point increase in October, given signs of economic resilience. Politically, the ruling Liberal Democratic Party is set to elect a new leader on October 4 to succeed the outgoing Prime Minister Shigeru Ishiba.