The Japanese Yen (JPY) continued to weaken for the second straight day after the release of the Bank of Japan (BOJ) Summary of Opinions from its September Monetary Policy Meeting, along with mixed economic data on Tuesday.
The content of the summary indicated no immediate plans for additional interest rate hikes, emphasizing a focus on stability and careful communication. The BOJ intends to maintain its accommodative stance but remains open to adjustments if economic conditions show significant improvement.
Japan's Tankan Large Manufacturing Index showed that overall business conditions for large manufacturing firms remained stable at 13 points in the third quarter, in line with expectations. Additionally, Japan's Unemployment Rate fell to 2.5% in August, down from 2.7% in July, which was better than the market forecast of 2.6%.
In addition, dovish comments from incoming Japanese Prime Minister, former Defense Chief Shigeru Ishiba, exerted downward pressure on the JPY and supported the USD/JPY pair. Ishiba said Sunday that the country's monetary policy should remain accommodative, indicating the need to keep borrowing costs low to support a fragile economic recovery, The Japan Times reported.(ayu)
Source: FXstreet
