FX.co ★ Yen Holds Steady Ahead of BOJ Decision

The Japanese yen hovered around 159.5 per dollar on Tuesday, trading in a narrow range this week as investors turned cautious ahead of the Bank of Japan’s upcoming policy meeting. The central bank is widely expected to leave its benchmark interest rate unchanged, as policymakers balance mounting inflation risks against weaker growth prospects stemming from the Middle East conflict. Still, market participants are increasingly speculating that BOJ Governor Kazuo Ueda may signal a gradual move toward policy normalization in the coming months. Investors also kept a close eye on geopolitical developments after Iran submitted a new proposal to the US, though persistent disagreements over Tehran’s nuclear program remain a major obstacle. Meanwhile, Finance Minister Satsuki Katayama reiterated that authorities stand ready to intervene at any time to support the yen, noting that Japan and the US plan to further strengthen coordination on currency issues.