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Yen steadies as Japan pushes fiscal stimulus, rate hike timing unclear

USD/JPY hovered near 157.90 in Asian hours Tuesday as uncertainty over the Bank of Japan’s next move persisted despite Japan’s expansionary fiscal plans.

Reported · Written up by our desk · Major Pairs

USD/JPY traded in a narrow range after gaining slightly the previous day, holding around 157.90 during Asian hours Tuesday, according to FXStreet.

The yen steadied after Japan’s Prime Minister Sanae Takaichi backed expansionary economic measures, including a pledge to lower the consumption tax on food products while indicating funding will be secured without issuing additional bonds.

FXStreet said uncertainty remains over the Bank of Japan’s monetary path, with a summary of opinions from the central bank’s September meeting pointing to growing concerns that inflation could run above the 2% target, which keeps another rate hike this year on the table.

However, the central bank offered little detail on when any future rate adjustment might occur, with policy meetings scheduled for October and December, FXStreet added.

Latest closeUSD/JPY 157.94 ▲0.1%

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