Dollar/yen briefly fell to the 156 range, apparently against the backdrop of the yen's appreciation, but the direct impact of the Bank of Japan meeting as a factor behind the yen's strength was viewed as limited.
In today's foreign exchange market, selling prevailed in dollar/yen, with the dollar briefly falling to the 156 range. Rather, the yen's appreciation pushed down dollar/yen, and few market participants viewed the Bank of Japan meeting itself as having prompted the yen's strength. Some suggested that selling in AI-related stocks during after-hours trading following the previous day's US corporate earnings had triggered a risk-averse move that led to yen appreciation.
The Bank of Japan announced that it would leave its policy rate unchanged at 1.25%, with the vote 8–1 and a hawkish committee member arguing for a rate hike. Governor Ueda said it was necessary to confirm stable movement in policy at around 2% and that the Bank would make its decision including at the next meeting.
Many market participants viewed the Bank of Japan as offering no new indication of when an additional rate hike might occur, while some believed the probability of a December hike remained around 80%. The short-term money market's reaction after the Bank of Japan's press conference did not include a clear signal suggesting a change in the inflation outlook.
No options expiry in the New York market at local time was currently being observed, and movements near current levels were reportedly limited as of Friday the 30th.