Support
Dollar remains strong, markets eye economic data
Japanese yen holds near 153 ahead of Thursday’s Bank of Japan (BOJ) meeting.
BOJ expected to keep rates steady; rate hike plans unclear amid Japan’s political uncertainty.
Loss of ruling coalition majority adds to uncertainty over BOJ’s policy path.
U.S. Fed expected to cut rates by 25 bps; dollar remains strong as a safe haven.
BoJ Meeting
The Japanese yen held steady on Wednesday, with the USD/JPY pair trading close to 153 yen after nearly touching 154 in overnight action.
The yen’s softness came ahead of Thursday’s Bank of Japan meeting, where the central bank is expected to keep rates unchanged.
Adding to the uncertainty, recent political shifts in Japan have cast doubt on the BOJ’s plans for further rate hikes following two increases earlier this year. The ruling coalition, led by the Liberal Democratic Party, recently lost its parliamentary majority, creating a more fragmented political landscape in Japan.
Key Market Movers
Asian currencies saw little movement on Wednesday as the dollar held steady, with attention firmly on the upcoming U.S. presidential election and critical economic data releases.
The Japanese yen also remained flat after hitting a three-month low, with markets now focused on the outcome of a Bank of Japan meeting set for Thursday.
Key U.S. economic data is expected later this week, preceding a Federal Reserve meeting where the central bank is likely to implement a modest rate cut of 25 basis points, but the dollar so far has been resilient as investors flock to its safe haven value.
