19.09.202501:58:32UTC+00Japanese Yen Steadies Ahead of BOJ Decision

The Japanese yen remained steady, hovering around 148 per dollar, as traders eagerly anticipate the Bank of Japan's policy decision. While no changes in rates are expected, there are market speculations of a potential 25 basis point hike come October, fortified by indications of economic resilience.

Investors are also considering the recent data report showing a 2.7% increase in Japan's core inflation in August. This, however, marks a decline for the third consecutive month, reaching its lowest since November 2024. In the meantime, the yen saw about a 1% drop in the previous two sessions as the US dollar grew stronger following the Federal Reserve displaying a less accommodating position than anticipated.

Earlier this week, the Fed implemented a quarter-point cut and forecasted two more cuts for this year, diverging from their previous prediction of just one cut in 2026. Fed Chair Jerome Powell described the move as a risk management measure in response to the labor market's weakness, emphasizing that there is no need for rash easing.