The Japanese yen has dipped below the 155 per dollar level as the Bank of Japan (BOJ) initiates its policy meeting. This follows a breakout by the dollar above 155 yen for the first time since 1990, due to market anticipation of the BOJ leaving interest rates unchanged. Despite speculation that the BOJ might intervene to strengthen the yen, no action has been taken so far. The central bank is widely expected to maintain its accommodative monetary policy. Analysts believe that the yen will remain at low levels due to the BOJ’s dovish stance and low inflation projections, even after recent strength in economic activity in the eurozone and the UK. The dollar index, which measures the greenback against a basket of major currencies, steadied around 105.79, retreating from a two-week low. The Australian dollar gained slightly to 0.6500, as bets for interest rate cuts by the Reserve Bank of Australia have faded. The New Zealand dollar also edged higher to 0.5940. Market participants will closely monitor the BOJ’s policy deliberations to assess any potential changes in the bank’s stance on monetary policy and inflation.
Yen Stumbles Below 155 Per Dollar as BOJ Rate-Setting Meeting Commences
