The yen temporarily fell to around ¥156 per dollar in the foreign exchange market, giving up half of its gains from the correction in the yen's weakness during the first half of this month. As the Federal Reserve decided to raise interest rates and expectations for additional hikes grow, the market is focused on the prospect of a hawkish stance from the Bank of Japan ahead of its monetary policy meeting.
The yen fell to ¥156 per dollar in the foreign exchange market, giving up half of the gains made during the correction in its weakness in the first half of last month.
The Federal Reserve (FRB) decided to raise interest rates at the 15-16 FOMC meeting, and expectations for additional US rate hikes are growing.
The view is spreading in the market that it would be difficult for the Bank of Japan to adopt the same stance as the Federal Reserve, and attention is focused on its monetary policy meeting, which is expected to continue through the 18th.
Under these circumstances, the yen's direction could be affected depending on the Bank of Japan's response.