The dollar strengthened in New York trading, with dollar-yen extending its gains to just below ¥158. Markets are now focused on gauging the outcome of the FOMC meeting and the Bank of Japan policy meeting.
Dollar-yen extended its gains to just below ¥158 toward the end of New York trading, while some dollar-bearish factors also began to ease. Trading in U.S. equities and crude oil was subdued, and yen appreciation pressure from risk aversion also eased at times.
At the same time, markets are strongly focused on the outlook following the monetary policy decisions in Japan and the United States and are awaiting the FOMC decision and the outcome of the Bank of Japan policy meeting. Some observers say market participants are pricing in a December rate hike.
In short-term markets, a hold at the FOMC is increasingly viewed as certain, but moves suggesting a greater possibility of a December rate hike have emerged. A hold by the Bank of Japan is likewise expected, although the specific decisions remain uncertain.
Investors are focused on future policy decisions in Japan and the United States and market developments, amid the possibility that wage trends, inflation and the impact of international monetary policy could affect the dollar-yen exchange rate.