The Japanese yen held its recent decline to around 153.4 per dollar on Wednesday, hovering at a three-month low as investors look ahead to the latest Bank of Japan policy decision. The central bank is widely expected to keep rates unchanged on Thursday, while traders are eager for hints of a potential rate hike before the year ends. This outlook cautiously follows recent data indicating weak exports and stagnant household spending.

The BOJ is also unlikely to change its policy following the ruling coalition's loss of parliamentary majority. The head of the opposition Democratic Party of the People has suggested that the central bank should refrain from making significant policy changes, given that real wage growth is currently stagnant. In response to the yen's ongoing weakness, Finance Minister Kato explained that authorities are vigilant regarding FX movements. Market concerns are mounting that a further decline toward the 160 level could trigger another round of currency intervention.

Source: Trading Economics