The yen could fall further if market expectations for the BOJ's rate-hike pace turn more dovish. USD/JPY is trading in the mid-157s.
In the New York foreign exchange market, USD/JPY traded in the mid-157s. Market participants said the yen could fall further if market expectations for the BOJ's rate-hike pace turn more dovish.
A BOJ Policy Board member's opposition to the latest rate hike has fueled skepticism about the possibility of a policy shift. Governor Ueda (植田) also emphasized his view that the response of monetary policy had not been behind the curve, contributing to the perception that the hurdle for another rate hike is high.
Expectations that the U.S. Federal Reserve Board (FRB) will raise interest rates again in October were also cited as a factor keeping downward pressure on the yen. Some said that factors prompting USD/JPY selling could weaken in the near term.