In Tokyo foreign exchange trading on 28 October, the yen moved little against the dollar ahead of the FOMC decision. As of 5:00 p.m., the rate was ¥157.78 to the dollar, representing a slightly stronger yen than the previous day.
In Tokyo trading on 28 October, the yen remained little changed against the dollar ahead of the release of the decision by the meeting that determines US monetary policy. During trading hours, market attention was focused on the FOMC statement and interest-rate outlook.
The move observed that day was slight in the direction of a stronger yen and weaker dollar, with the rate at ¥157.78 to the dollar as of 5:00 p.m. The yen traded around 8 sen stronger than the previous day.
Market participants believe that, although short-term position adjustments are under way ahead of the FOMC decision, it is difficult to identify a clear direction. As new market moves may emerge following the announcement, a wait-and-see stance is expected to continue.
Going forward, the FOMC statement, interest-rate outlook and additional monetary policy guidance may affect the yen's movements. Investors are expected to focus on the market reaction after the release and developments in the Japan-US interest-rate differential.