The dollar weakened against the yen in Tokyo on Tuesday, with a Bank of Japan quote below published estimates of its 200-day moving average ahead of Japan's inflation report and two central bank meetings.
At 4 a.m. ET Tuesday (08:00 UTC), the Bank of Japan quoted the dollar at ¥158.07–¥158.09, down from ¥158.52–¥158.53 at 8 p.m. ET Monday (00:00 UTC Tuesday). The bank recorded an Oct. 20 range of ¥158.04–¥158.60 per dollar.
The later quote was also below the bank's ¥158.16–¥158.18 reading at the same time on Oct. 19. The retreat followed a rise in the dollar against the yen on Monday. A higher dollar-yen rate means each dollar buys more yen.
FXStreet put the dollar's 200-day simple moving average against the yen at ¥158.57. FXTribune separately calculated ¥158.554 using European Central Bank reference rates. The Bank of Japan's ¥158.60 high exceeded both published estimates, while its later quote was below them.
U.S. and Japanese policy rates remain far apart. The Federal Reserve raised its target range by 0.25 percentage point to 3.75%–4.00% in September. The Bank of Japan set its overnight rate target at around 1.25%, leaving the U.S. range about 2.50 to 2.75 percentage points higher.
The Bank of Japan said in September that yen depreciation, high crude oil prices and demand related to artificial intelligence were contributing to producer price pressure. It said some of that pressure had begun reaching consumers.
Japan is due to release its September consumer price index Oct. 23. The Federal Reserve meets Oct. 27–28, followed by the Bank of Japan on Oct. 29–30.
