The yen traded near ¥157.8 per U.S. dollar Thursday as currency markets awaited the Bank of Japan’s Oct. 30 policy decision and a new Tokyo inflation reading.
Market readings varied slightly by outlet and timestamp. Reuters put the dollar at ¥157.755 in a report posted at 1:35 a.m. ET (05:35 UTC) Thursday. The Associated Press cited ¥157.72, down from ¥157.84, during early Thursday trading. FXStreet later reported a quote near ¥157.80 at 2:08 a.m. ET (06:08 UTC).
The Bank of Japan’s daily exchange-rate data showed the dollar between ¥157.78 and ¥157.80 at 4 a.m. ET Wednesday (5 p.m. Japan time), within that day’s range of ¥157.76 to ¥158.03. EconoTimes previously covered the yen’s decline ahead of central bank decisions.
At its Sept. 18 meeting, the BOJ set the guideline for the uncollateralized overnight call rate at around 1.25%, effective Sept. 24, in a 7-2 vote. In September, it said underlying inflation was nearing 2% and financing conditions remained supportive. The central bank said it would judge any further rate changes against the economy, price trends and financial conditions.
Reuters reported that its economist poll pointed to a quarter-point rate increase in December; that was a survey forecast, not a BOJ announcement. The central bank’s next policy meeting is scheduled for Dec. 17-18.
The BOJ’s October Financial System Report described mixed effects from higher rates. It said the rise had strengthened banks’ earnings from core operations, while rates on floating-rate housing loans had climbed. The report said wage growth was likely to ease the added repayment burden on households.
The BOJ calendar schedules its policy statement and October outlook for Friday, Oct. 30, but does not specify a release time. Japan’s Statistics Bureau has scheduled October Tokyo-area consumer price index data for the same day.
