FX.co ★ Yen Steady as BOJ Policy Signals Weighed

The Japanese yen remained steady at approximately 147 per dollar on Tuesday, sustaining its recent advances. This occurred after the minutes from the Bank of Japan's June meeting suggested that policymakers are open to the possibility of further interest rate hikes if trade tensions ease. Despite this, the board has affirmed that the current interest rates are suitable given the ongoing uncertainties. A Ministry of Finance representative also highlighted the necessity for the BOJ to maintain flexibility, especially in its approach to bond purchases, in order to ensure market stability. Last week, the BOJ decided to keep interest rates unchanged but adjusted its inflation forecast upwards, while expressing concern over increasing risks associated with global trade tensions. Simultaneously, the yen appreciated over 2% during the preceding two sessions as the dollar weakened in response to a softer US jobs report, which intensified speculation about potential interest rate cuts by the Federal Reserve.