2025.09.2302:32:08UTC+00Japanese Yen Edges Higher on Dollar Weakness

On Tuesday, the yen strengthened to about 147.5 per dollar, bouncing back from its two-week low as the U.S. dollar weakened amid investor reassessment of the Federal Reserve’s policy stance. The dollar also faced pressure due to political uncertainty in the United States, compounded by ongoing congressional discussions aimed at avoiding a government shutdown on September 30. In Japan, the Bank of Japan maintained its policy rate at 0.5% for the fifth consecutive meeting on Friday, in line with expectations. The central bank noted moderate economic recovery but pointed to some areas of weakness and potential risks arising from global trade policies. Additionally, a unanimous decision was made to commence the sale of ETF and J-REIT holdings, indicating a slow transition in asset support strategy. Looking forward, market participants are eagerly anticipating Japan’s upcoming PMI and Tokyo inflation figures, along with the release of minutes from the BOJ’s July meeting, seeking further insights into future policy moves.