Yen slips toward 155 as Fed and BoJ decisions come into view
The Japanese Yen weakened on September 16 as the US Dollar advanced toward 155 while traders weighed the upcoming Federal Reserve and Bank of Japan decisions.
The Japanese Yen weakened on Wednesday, with USD/JPY reaching around 155.43 as the Dollar extended recent gains ahead of major central-bank decisions.
The Dollar has been supported by higher US Treasury yields and expectations for a Federal Reserve rate hike. The Yen, meanwhile, remains sensitive to expectations for possible Bank of Japan tightening.
Reuters reported that markets were watching both policy meetings closely, with the relative paths of the Fed and BoJ remaining a key driver of USD/JPY.
Oil prices and global inflation risks could also influence the Yen because higher energy costs affect Japan's import bill and monetary-policy outlook.
Key Takeaways
- USD/JPY reached around 155.43 on September 16.
- Higher US yields are supporting the Dollar.
- Fed and BoJ policy expectations remain central to USD/JPY.
- Oil prices remain an important risk for the Yen.
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