In Japanese markets on the 17th, the yen at times fell to around ¥156 against the dollar, while there was also some yen-buying ahead of the Bank of Japan's Monetary Policy Meeting, and super-long-term bond yields declined.
The dollar's rise following the US FOMC paused, prompting some yen-buying in domestic markets, while the yen fell to the mid-¥156 range against the dollar. A market participant at Mizuho Bank said the outlook for an additional rate hike by the Bank of Japan would be the focus.
The Bank of Japan's Monetary Policy Meeting began on a 2-day schedule, with the market having largely priced in expectations that the policy rate would be raised to 1.25%, its highest level in 31 years. Attention is also focused on remarks by Governor Ueda Kazuo (植田 和男) after the meeting.
The dollar strengthened as the market took the view that the Federal Reserve's hawkish stance had been maintained, and the US 2-year Treasury yield rose to 4.74%. The yen fell to ¥156.42 at one point, but subsequently moved around ¥156.
At the same time, the yen's weakening and the dollar's strengthening paused at times, and yen-buying in the mid-¥155 range was seen in the afternoon.