FX.co ★ Japanese Yen Holds Advance

On Thursday, the yen maintained its position near 147 per dollar, bolstered by a four-day upward trend. This strength is attributed to safe-haven inflows amid a weakening dollar, which has been impacted by the US government shutdown. The ongoing political stalemate is anticipated to persist for a minimum of three days, subsequently delaying the publication of significant economic data, such as the September nonfarm payrolls report. Domestically, speculation that the Bank of Japan might resume policy normalization before the year ends has further supported the yen. Markets are currently estimating a 40% probability of a quarter-point interest rate hike at the upcoming meeting. Recent data revealed enhanced sentiment among Japan's major manufacturers in the third quarter, reaching its highest level since late 2024. However, challenges remain due to US tariff policies. Investors are now looking forward to the upcoming consumer confidence report for further insights into the economy's trajectory.