USD/JPY Consolidates Around 163.50 Amid Fed Pause and Geopolitical Tensions
The USD/JPY exchange rate has settled into a narrow trading range around 163.50, as markets digest the Federal Reserve's decision to keep interest rates unchanged.
Although three FOMC members voted in favor of a rate hike and Fed Chairman Kevin Warsh emphasized that the pause should not be seen as a rejection of further policy tightening, the dollar has declined modestly after the announcement.
The Bank of Japan is expected to keep rates steady on Friday but may signal its readiness to tighten further to combat the yen's decline.