Yen-dollar cross remains almost unchanged on Tuesday

The Japanese yen remained near 153.5 per dollar on Tuesday, following a sharp decline in the previous session, as the dollar strengthened amid expectations that strong U.S. economic growth and aggressive trade policies under a Trump presidency will push inflation higher.

Yen-dollar cross remains almost unchanged on Tuesday

Domestically, the Bank of Japan's October policy meeting minutes revealed a split among policymakers regarding the timing of future interest rate hikes. Some members voiced concerns about global economic uncertainties and rising market volatility, particularly regarding the yen’s continued depreciation. Despite these concerns, the Bank of Japan maintained its forecast to raise its benchmark policy rate to 1% by the second half of fiscal 2025.

Japanese officials interventions

The yen's ongoing weakness has prompted renewed verbal intervention from Japanese officials, with Finance Minister Katsunobu Kato warning that Japan would take "appropriate action" to address significant fluctuations in the foreign exchange market.