Yen holds near 3-month low as BOJ's policy decision approaches

The Japanese yen maintained its recent drop to around 153.4 per dollar on Wednesday, remaining at a three-month low as investors anticipate the upcoming Bank of Japan policy decision.

Yen holds near 3-month low as BOJ's policy decision approaches

The central bank is expected to keep interest rates steady on Thursday while traders look for signs of a potential rate hike before year-end. This cautious sentiment comes from recent data showing weak exports and stagnant household spending. The BOJ is unlikely to change its stance after the ruling coalition loses its parliamentary majority. The leader of the opposition Democratic Party of the People has suggested that the central bank avoid significant policy changes due to the current stagnation in real wage growth.

Kato: Yen weakness monitored amid risks of currency intervention

In light of the yen's continued weakness, Finance Minister Kato has reiterated that authorities are closely monitoring foreign exchange movements. Concerns are rising that a further drop toward the 160 level could prompt another round of currency intervention.