Yen Strengthens on Hawkish BOJ Minutes
The Japanese yen strengthened past 158 per dollar on Thursday, extending gains for a second consecutive session as minutes from the Bank of Japan's September meeting reinforced expectations of further monetary tightening. One board member indicated that there may be room to accelerate interest rate increases as the central bank assessed the effects of Middle East developments, growing demand linked to artificial intelligence, and foreign exchange movements. The BOJ raised its policy rate to a 31-year high of 1.25% in September before keeping it unchanged in October, while signaling that underlying inflation had reached its 2% target, potentially setting the stage for another rate hike in December. The yen also drew support from a weaker US dollar following Democratic victories in the US midterm elections. The decisive outcome eased political uncertainty and lowered expectations that President Donald Trump would resume military strikes against Iran.
The Japanese yen strengthened past 158 per dollar on Thursday, extending gains for a second consecutive session as minutes from the Bank of Japan's September meeting reinforced expectations of further monetary tightening. One board member indicated that there may be room to accelerate interest rate increases as the central bank assessed the effects of Middle East developments, growing demand linked to artificial intelligence, and foreign exchange movements.
The BOJ raised its policy rate to a 31-year high of 1.25% in September before keeping it unchanged in October, while signaling that underlying inflation had reached its 2% target, potentially setting the stage for another rate hike in December. The yen also drew support from a weaker US dollar following Democratic victories in the US midterm elections. The decisive outcome eased political uncertainty and lowered expectations that President Donald Trump would resume military strikes against Iran.