Yen stabilizes at JPY149 against dollar

The Japanese yen stabilized around JPY149 against the dollar on Wednesday, after falling to nearly JPY150 earlier in the week, as investors reacted to the latest comments from Bank of Japan board member Seiji Adachi.

Yen stabilizes at JPY149 area against dollar

Adachi said the conditions were already in place to normalize monetary policy but stressed that the central bank must raise interest rates at a "very moderate" pace. He warned that the BOJ must avoid a drastic policy shift, given uncertainties over the global economic outlook and domestic wage growth.

Escaping BOJ pressure

Earlier this month, the yen came under pressure following dovish signals from BOJ Governor Kazuo Ueda and opposition to further rate hikes from new Prime Minister Shigeru Ishiba.

The local currency also weakened against the dollar on bets that the U.S. Federal Reserve will be more cautious in cutting interest rates further.