Reuters said the yen moved little on Monday, with the dollar quoted at ¥156.920 as traders entered a week of policy meetings in Washington and Tokyo and U.S. economic releases.
The Federal Reserve's two-day meeting is scheduled for Oct. 27-28, followed by a press conference on Oct. 28. The Bank of Japan (BOJ) meets Oct. 29-30, and its policy statement is due Oct. 30. The BOJ has not set a release time.
The Fed's target range for the federal funds rate is 3.75% to 4.00%, effective Sept. 17. On Sept. 18, the BOJ set its overnight call rate at around 1.25%, effective Sept. 24. The Federal Open Market Committee said in September that inflation remained elevated.
The BOJ said its underlying inflation gauge was nearing 2%. It identified exchange-rate moves as a risk to Japan's economic activity and prices, and said yen depreciation and high crude oil prices had contributed to producer-price increases.
Reuters attributed the dollar's softer tone to lower oil prices and U.S. Treasury yields. The agency also reported traders expected both central banks to keep rates steady, without assigning a probability to either outcome. Ray Attrill, head of FX strategy at National Australia Bank, told Reuters the U.S. bond market was “in the driving seat” for the dollar's broader performance.
The BOJ's Oct. 23 exchange-rate table showed the dollar between ¥156.95 and ¥156.97 at 5 p.m. JST (08:00 UTC). It recorded a daily range of ¥156.08 to ¥157.16.
The Bureau of Economic Analysis (BEA) has scheduled its advance estimate of third-quarter gross domestic product and September Personal Income and Outlays report for Oct. 29. The report includes the personal consumption expenditures (PCE) price index. The U.S. releases fall on the first day of the BOJ meeting.
