Yen Holds Firm Ahead of Fed Rate Decision

The yen remained firm in the upper 154 range against the dollar on expectations of a rate hike by the Federal Reserve. The pair traded at 154.65-66 yen per dollar as of 10:00 a.m., down 26 sen from the previous day's levels.

Expectations of additional rate hikes by the Fed pushed U.S. long-term interest rates up, drawing attention to widening U.S.-Japan interest rate differentials. This led to sustained dollar-buying and yen-selling in the market.

The Bank of England's decision to keep its policy rate unchanged weighed on the pound against the dollar. Meanwhile, crude oil prices continued to rise, supporting the dollar.