Yen steadies after Takaichi-Ueda meeting

The Japanese yen held around 155.5 per dollar on Wednesday, pausing a recent decline as investors assessed the Bank of Japan’s policy outlook following a meeting between Governor Kazuo Ueda and Prime Minister Sanae Takaichi.

On Tuesday, Ueda told Takaichi that the central bank is gradually raising interest rates to steer inflation toward its 2% target while supporting sustainable economic growth.

After the meeting, he told reporters that the prime minister made no specific requests on monetary policy. Market views remain divided on whether the BOJ will raise rates again in December amid mixed economic signals.

On the data front, Japan’s machinery orders rose more than expected in September, pointing to robust capital spending. Still, the yen traded close to ten-month lows amid expectations of large-scale fiscal spending under the new administration.