The Japanese yen traded around 152.3 per dollar on Thursday, following a three-day decline, as uncertainty over the timing of potential interest rate hikes by the Bank of Japan (BOJ) continued to pressure the currency.
Japanese yen up against dollar
Market expectations for a December rate hike were reduced after reports indicated that the BOJ sees "little cost" in waiting before taking action. Some BOJ officials have left the possibility open for a rate increase next week, depending on incoming data and market conditions. Meanwhile, there are signs that certain members of the central bank are less concerned about the risk of a weak yen driving inflation.
Eyes on Friday's data
Investors are now focusing on Friday’s Japanese business sentiment data for further insight into the country's economic outlook. Additionally, the yen faced external pressure from a strong US dollar, despite recent US inflation data reinforcing expectations of a Federal Reserve rate cut next week.
