Japanese Yen struggles for direction as BoJ interest rate decision looms
USD/JPY trades little changed on Thursday as the Japanese Yen (JPY) underperforms most of its major peers, although a softer US Dollar (USD) keeps the pair from gaining much ground. Traders remain cautious ahead of the Bank of Japan’s (BoJ) monetary policy announcement on Friday.
The Japanese Yen (JPY) struggled for direction on Thursday as the Bank of Japan (BoJ) prepared to make a monetary policy decision on Friday. USD/JPY traded around 157.90, underperforming most of its major peers. It was expected that the BoJ would maintain interest rates at 1.25% following a 25-basis-point increase in September. Traders anticipated a potential rate hike to 1.5% by December due to higher energy and import costs.
Inflation data showed prices excluding fresh food rose 2.1% year-over-year, above the BoJ's 2% target. Analysts noted that traders were more concerned with the guidance for rate hikes in December than the immediate decision.
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