After the FOMC meeting, market focus shifted to the BOJ meeting, with dollar-yen at one point falling below the ¥156 level. The pace of BOJ rate hikes and the direction of the interest rate differential with the U.S. are key points of focus.
After the FOMC meeting, yen buying prevailed, and dollar-yen at one point fell below the ¥156 level. The BOJ monetary policy meeting begins today, heightening market expectations regarding the pace of rate hikes.
Markets are watching whether the BOJ will turn hawkish in step with the U.S. The widening U.S.-Japan interest rate differential is viewed as potentially driving further yen depreciation.
The bond market is also focused on developments surrounding the Takaichi cabinet reshuffle, particularly whether Minister of State for Economic and Fiscal Policy Jōnai (城内), who led the formulation of the Basic Policies, will remain in office.