The Japanese yen appreciated to around 152.2 per dollar on Friday, rising nearly 1% from the previous session, bolstered by Bank of Japan Governor Kazuo Ueda's unexpectedly firm remarks.
Yen strengthens after BoJ comments
On Thursday, the BOJ maintained its policy rate at 0.25%, a widely anticipated decision as the central bank navigates a period of political transition in Japan, which has increased uncertainty over the country's fiscal and monetary outlook. During the post-meeting briefing, Ueda noted that economic risks in the US appear to be easing, hinting at conditions that might allow for a rate hike. Markets are now speculating that the BOJ could raise rates to 0.5% as early as January, though fluctuations in the yen and inflation data are expected to be key factors.
Eyes on U.S. vote
Despite the yen’s recent boost, it remains near its lowest levels in three months, as the dollar is buoyed by signs of strength in the US economy and expectations of a potential Trump victory in the upcoming election.
