Yen Holds Steady Ahead of BOJ Policy Meeting
The Japanese yen traded around 156.7 per dollar on Monday, remaining near five-week highs as investors awaited the Bank of Japan’s policy meeting later this week. The central bank is widely expected to leave interest rates unchanged before potentially raising them in December amid persistent inflationary pressures. Data released last week showed that both headline and core inflation in Japan climbed 2.1% year-on-year in September, reaching their highest levels in nine months as a weaker yen and elevated energy prices drove up import costs. Investors are also monitoring policy decisions from other major central banks this week, which could influence the yen’s direction, with the US Federal Reserve likewise expected to keep rates steady. Meanwhile, the Japanese currency strengthened last week as a global selloff in technology and artificial intelligence stocks boosted demand for safe-haven assets.
The Japanese yen traded around 156.7 per dollar on Monday, remaining near five-week highs as investors awaited the Bank of Japan’s policy meeting later this week. The central bank is widely expected to leave interest rates unchanged before potentially raising them in December amid persistent inflationary pressures. Data released last week showed that both headline and core inflation in Japan climbed 2.1% year-on-year in September, reaching their highest levels in nine months as a weaker yen and elevated energy prices drove up import costs.
Investors are also monitoring policy decisions from other major central banks this week, which could influence the yen’s direction, with the US Federal Reserve likewise expected to keep rates steady. Meanwhile, the Japanese currency strengthened last week as a global selloff in technology and artificial intelligence stocks boosted demand for safe-haven assets.