Yen pulls back as BoJ outlook weighed

The Japanese yen slipped to around 148.7 per dollar on Tuesday, pausing a two-day rally as investors digested mixed signals from the Bank of Japan.

The Summary of Opinions from the September meeting showed some policymakers favored further rate hikes if growth and inflation projections hold, while others backed maintaining low rates to cushion the economy from the impact of US tariffs.

One member urged a cautious wait-and-see stance, citing global trade policy, US monetary settings, currency moves and domestic wages and prices as key factors.

Another suggested the time may be right to consider another hike, noting more than six months have passed since the last move.

On the data front, Japan’s retail sales fell 1.1% in August, missing forecasts of a 1% increase and marking the first decline since February 2022, while industrial output also dropped more than expected.