The Japanese yen appreciated toward 148 per dollar on Wednesday, recouping some losses from earlier in the week as the US dollar retreated ahead of the Federal Reserve’s policy announcement. The Fed is widely expected to keep interest rates unchanged, though markets are focused on potential signals pointing to a rate cut in September. Investors also assessed the outcome of US-China trade talks in Stockholm, which ended Tuesday without an extension of the current truce. On the domestic front, market participants looked ahead to the Bank of Japan’s policy decision, with expectations for rates to remain steady as officials gauge the economic impact of US tariffs. The BOJ is also expected to revise its inflation forecast higher in its quarterly outlook. Meanwhile, political uncertainty lingered, with mounting calls for Prime Minister Shigeru Ishiba to step down. Ishiba, however, reiterated his commitment to stay in office.