Japan: Yen Edges Up Ahead of BOJ Policy Meeting.

The Japanese yen strengthened slightly beyond 158 per dollar on Thursday but remained within a tight trading range as investors awaited next week’s Bank of Japan policy meeting. The central bank is widely expected to keep interest rates unchanged before potentially raising them in December amid persistent inflationary pressures. On Wednesday, BOJ Deputy Governor Ryozo Himino noted that underlying inflation was approaching the bank’s 2% target and cautioned against delaying policy adjustments, reinforcing hawkish remarks made by Governor Kazuo Ueda earlier this week. However, the yen continued to face pressure from carry trades, as Japan’s relatively low interest rates reduced the currency’s attractiveness. The BOJ’s gradual pace of monetary tightening is also seen as insufficient to significantly narrow the interest rate differential between Japan and other major economies.