The Japanese yen weakened to around 153.7 per dollar on Wednesday, giving back some of the gains from the previous session as investors prepared for the US Federal Reserve's upcoming policy decision.
Yen remains under pressure ahead of Fed decision
The Fed is widely expected to implement a quarter-point rate cut later today, but may signal fewer reductions next year than initially anticipated due to ongoing inflation concerns. In Japan, speculation is rising that the Bank of Japan may delay an interest rate hike when it announces its decision on Thursday, following reports suggesting the central bank sees "little cost" in postponing further tightening.
BoJ decision will depend on economic data
Policymakers seem inclined to wait for more data to assess the economy’s performance before taking additional steps. On the economic front, Japanese export growth accelerated to a three-month high in November, while imports unexpectedly dropped.
