FX.co ★ Yen Pressured by Takaichi Remarks

The Japanese yen was trading at approximately 154.7 per dollar on Thursday, maintaining its position near a nine-month low. This follows Prime Minister Sanae Takaichi's appeal to the central bank to sustain low interest rates. She further requested Bank of Japan (BOJ) Governor Kazuo Ueda to give regular updates to the government's Council on Economic and Fiscal Policy. Concurrently, Ueda addressed parliament, emphasizing the central bank's commitment to achieving moderate inflation fueled by wage increases and stable economic growth, aligning with Takaichi's pro-growth approach. The markets currently estimate a 24% chance of a 25 basis point rate hike in December, increasing to 46% by January. In other developments, Finance Minister Satsuki Katayama reiterated the government's concerns about excessive yen depreciation as it approached the 155 mark, deeming such rapid and one-sided currency movements undesirable. Regarding economic data, Japan's producer prices increased beyond expectations in October.