Skip to content Yen Drops to 152.3 as U.S. Election and Fed Move Awaited
On Tuesday, the Japanese yen weakened to around 152.3 per U.S. dollar, erasing some of its gains from the previous day. This drop happened because investors became cautious about the closely contested U.S. presidential election. They’re also preparing for the U.S. Federal Reserve’s policy decision later this week, where a modest 25-basis-point rate cut is widely expected.
Bank of Japan Maintains -0.1% Rate as Uncertainty Grows
In Japan, the Bank of Japan (BOJ) kept its policy rate unchanged at -0.1% last week amid domestic political uncertainty, which has raised concerns about the country’s fiscal and monetary policies. BOJ Governor Kazuo Ueda mentioned that economic risks in the U.S. seem to be decreasing, suggesting conditions might be right for a possible rate hike.
Markets speculate that the BOJ could raise rates to 0% as early as January, but they’ll closely watch yen fluctuations and inflation data before making that decision.
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