Japanese Yen edges lower vs USD amid Middle East jitters as Fed, BoJ meetings loom
The USD/JPY pair attracts some buyers at the start of a new week and climbs closer to the 154.00 mark during the Asian session, reversing a part of Friday's losses.
The Japanese Yen (JPY) weakened against the US Dollar (USD) amid Middle East tensions and as key central bank meetings approach. The USD/JPY pair, which climbed closer to the 154.00 mark in the Asian session, remains in a range near a nearly seven-month low. Traders await central bank events on September 15–16 and September 17–18.
Inflation data supported the belief that the Federal Reserve will raise interest rates, while heightened US-Iran tensions bolstered the safe-haven USD. The BoJ's potential more hawkish stance on tightening policy could further support the JPY, but traders are pricing in a 25-basis-point rate hike and a high chance of another in December.
The Yen's value is influenced by the Bank of Japan's policy, the differential between Japanese and US bond yields, and trader risk sentiment.
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