Japanese Yen edges higher vs bullish USD amid expectations of a more hawkish BoJ
The USD/JPY pair edges lower during the Asian session on Thursday, snapping a three-day winning streak and eroding a part of the previous day's gains to a nearly two-week high.
The Japanese Yen (JPY) has edged higher against the US Dollar (USD) amid expectations of a more hawkish Bank of Japan (BoJ) during Friday's monetary policy meeting, where a 25 basis points (bps) interest rate increase to a 31-year high of 1.25% is anticipated. This move, coupled with inflationary risks from higher energy prices, has bolstered the JPY, leading to a decline in the USD/JPY pair, which traded around the 156.00 mark.
The US Dollar, meanwhile, hit a fresh high since late July following the Federal Reserve's (Fed) hawkish rate hike, with further tightening prospects adding support to the USD and contributing to the downside risk for the USD/JPY pair. Geopolitical tensions, particularly the escalating conflict in the Middle East, have also favored the USD, adding to the pressure on the JPY.
Brief written by urgent.news from FXStreet's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
