Yen Firms Amid BOJ Rate Surprise: Markets Brace for Potential Hikes
The yen strengthened against the dollar following the Bank of Japan's unexpected announcement to hold interest rates steady, with dissent from two board members advocating for a hike. Markets are now anticipating the central bank's October 30 meeting as a potential point for a policy rate hike. Meanwhile, the U.S. Supreme Court will hear arguments on Trump's global tariffs, with wider implications for the economic landscape.
The yen surged against the dollar on Friday after the Bank of Japan (BOJ) decided to hold interest rates steady, despite two board members dissenting in favor of a rate hike.
The decision unsettled global markets, coming shortly after the U.S. Federal Reserve's rate cut, and suggests that rate increases may occur sooner than predicted, according to Invesco's Asia-Pacific strategist David Chao.
The BOJ's next meeting on October 30 is now crucial, potentially marking a timetable for a policy shift, as Japan's monetary path undergoes scrutiny during the country's political leadership election.
(With inputs from agencies.)
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