The Japanese yen is approaching 155 against the U.S. dollar as Prime Minister Sanae Takaichi advocates for the Bank of Japan to maintain its current interest rate policy. Takaichi highlighted that Japan has not fully emerged from deflation, underscoring the need for appropriate monetary measures.
Despite verbal interventions, the yen remains under pressure, with market expectations indicating a 24% chance of a BOJ rate cut in December. Investors are adjusting to the possibility of a prolonged pause in monetary tightening, as political preferences for loose monetary conditions may limit future rate hikes, potentially extending yen weakness.
USD/JPY Nears 155 as Japan's Takaichi Supports BOJ Rate Pause
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