Yen Holds Steady Amid Sluggish Export Growth
The Japanese yen was little changed around 158.2 per dollar on Wednesday, remaining within a narrow range as investors assessed data showing that exports increased less than expected in September and posted the slowest growth since April. Still, exports extended their growth streak to 13 consecutive months, supported by strong demand for semiconductors and AI-related products. On the monetary policy front, the Bank of Japan is widely expected to leave interest rates unchanged next week before implementing a rate hike in December. Earlier this week, Governor Kazuo Ueda noted that underlying inflation was nearing the central bank’s 2% target, reinforcing expectations of a more hawkish policy stance. However, the yen remained under pressure from persistent carry trades, as Japan’s relatively low interest rates continued to weigh on its appeal. The BOJ’s gradual approach to monetary tightening is also viewed as insufficient to close the interest rate gap with other major economies.
The Japanese yen was little changed around 158.2 per dollar on Wednesday, remaining within a narrow range as investors assessed data showing that exports increased less than expected in September and posted the slowest growth since April. Still, exports extended their growth streak to 13 consecutive months, supported by strong demand for semiconductors and AI-related products. On the monetary policy front, the Bank of Japan is widely expected to leave interest rates unchanged next week before implementing a rate hike in December.
Earlier this week, Governor Kazuo Ueda noted that underlying inflation was nearing the central bank’s 2% target, reinforcing expectations of a more hawkish policy stance. However, the yen remained under pressure from persistent carry trades, as Japan’s relatively low interest rates continued to weigh on its appeal. The BOJ’s gradual approach to monetary tightening is also viewed as insufficient to close the interest rate gap with other major economies.