Yen nears ten-month low

The Japanese yen traded around 155 per dollar, hovering near its lowest level in almost ten months as caution built ahead of the crucial meeting between Prime Minister Sanae Takaichi and BOJ Governor Kazuo Ueda.

Traders will be watching the talks closely for hints on the BOJ’s next steps and how policymakers may manage pressure on the yen, amid speculation that Takaichi will advocate a cautious approach to rate hikes while planning a larger-than-expected fiscal package.

The meeting follows data showing Japan’s economy shrank 1.8% on an annualized basis in Q3, the first drop in six quarters, as construction regulations and US tariffs weighed on activity.

Some economists argued the headline exaggerated the slowdown, but the report is likely to strengthen Takaichi’s resolve for bold stimulus.

Finance Minister Satsuki Katayama also voiced unease over the yen’s sharp, one-sided moves, citing concerns about the broader economic impact of a weaker currency.