The Japanese yen stabilized around 157.7 per dollar on Thursday after coming under pressure earlier in the week, as investors looked ahead to the Bank of Japan’s upcoming policy decision. The central bank is widely expected to leave interest rates unchanged, though policymakers may signal the possibility of a rate hike in December amid ongoing inflationary pressures. Market participants are also closely watching key Japanese data releases on unemployment, industrial production, retail sales, and Tokyo inflation, all due before the BOJ announcement.
At the same time, the US Federal Reserve held interest rates steady, as expected, though two officials dissented in favor of a 25-basis-point increase, reinforcing market expectations for a potential December hike. Separately, the yen saw renewed safe-haven demand after disappointing earnings from Alphabet and Samsung reignited concerns about the durability of AI-related investment trends.