Dollar Steady Amid Rate Hike Anticipation

The global currency market is abuzz with anticipation as investors wait for possible rate hikes from the US Federal Reserve on Wednesday and the Bank of Japan on Friday.

Despite the dollar remaining steady, Japan's yen has reached a seven-month high, causing oil prices to surge above $100 per barrel and adding another layer of inflation pressure.

MUFG, a Japanese banking group, notes that a 0.25% BOJ hike is 'almost fully priced', which means the decision itself may be less significant than the message it sends about future rate hikes.

TD Securities warns that if the BOJ doesn't hint at another move in October or December, the yen could quickly give back its gains, pushing USD/JPY higher.