FX.co ★ Yen Muted Ahead of BOJ Decision

The Japanese yen maintained its position around 152.5 per dollar on Thursday, exhibiting little movement as investors awaited the Bank of Japan's forthcoming policy announcement. It is anticipated that the Bank will keep interest rates steady. Nonetheless, discussions among policymakers are expected to focus on the prerequisites for resuming rate hikes, especially as tariff-induced pressures diminish and domestic inflation rises. Adding to the complex landscape, the newly elected Prime Minister, Sanae Takaichi, is a proponent of an accommodative monetary policy. On Wednesday, the yen weakened as the dollar gained strength following the US Federal Reserve's anticipated quarter-percentage-point rate cut. However, Federal Reserve Chair Jerome Powell emphasized that a further rate move in December was uncertain, citing existing internal disagreements and the impact of the government shutdown on federal data availability.