The yen remained near its high for the day in Tokyo trading on the afternoon of the 30th. Despite the Bank of Japan keeping its policy unchanged, indications of an upward revision to the inflation outlook have kept expectations of a December rate hike alive.
In Tokyo foreign-exchange trading on the afternoon of the 30th, the yen remained near its high for the day, with dollar-yen at around ¥157.40–¥157.42 as of 14:00. The yen had appreciated and the dollar weakened by approximately 42 sen from 17:00 the previous day.
Although the Bank of Japan kept its policy rate unchanged at its monetary policy meeting, it indicated that it intended to maintain its rate-hike path in anticipation of upside risks to prices, prompting yen buying. The market increasingly viewed the decision as a hawkish hold, although the yen briefly fell to ¥157.12 in the morning.
The focus at Governor Ueda Kazuo (植田 和男)’s press conference in the afternoon will be how far he addresses the timing of the next rate hike, and trading is expected to thin into the afternoon. Attention was drawn to the fact that Committee member Takata (高田) argued for a rate hike in the decision. The published Outlook Report indicated that prices were at a level broadly consistent with the 2% price stability target and showed an upward revision to the inflation outlook for 2027.
Market participants are increasingly focused on a rate hike at the December meeting and expect the yen to move again depending on Governor Ueda Kazuo (植田 和男)’s comments, while also anticipating a return of yen selling if his remarks lack specificity.