The yen temporarily strengthened after the BOJ left its policy rate at 1.25% while increasing the pace of ETF sales, but developments surrounding the U.S. ISM manufacturing index and the U.S. midterm elections are now the market's focus.
At its monetary policy meeting, the BOJ left its policy rate unchanged at 1.25%, in line with market expectations, while increasing the pace of ETF sales. The yen temporarily moved higher against this backdrop, but dollar buying resumed, helped by rising oil prices, narrowing the decline.
As a factor affecting dollar-yen, concerns over AI-related investment initially prompted yen buying and a decline to the ¥156 range, after which the market turned upward again. The latest information indicates that the BOJ's policy response and overseas factors are intersecting.
The focus ahead is the U.S. October ISM manufacturing index and the U.S. midterm elections, to be held on 3 November, while interest-rate expectations ahead of the December FOMC and BOJ meetings are drawing market attention.