Yen gains after BOJ, AI jitters drive Treasury rally, weigh on dollar

On October 30, the Japanese yen remained stable before the Bank of Japan's meeting, while the dollar fell as fresh concerns in AI stocks caused a rush to safety. The central bank is expected to keep interest rates unchanged at 1.25% despite high inflation, with a possible rate hike in December. The yen slipped slightly to about 157.815 per dollar, marking a 0.2% decline this month.

Central banks, including the European Central Bank, Federal Reserve, and Reserve Bank of New Zealand, held off on rate changes, awaiting signs of inflation easing and financial conditions improving. AI worries, sparked by Alphabet's recent results, pushed stock markets lower and attracted investment in safer assets, leading to lower US Treasury yields and a weaker dollar.

Oil prices remained high, with Brent crude futures gaining 11.5% in four consecutive months. Investors will closely watch the Bank of England, Reserve Bank of Australia, and other central banks for guidance as the global tightening cycle continues.