Yen Rises as BoJ Policy Outcome Looms

The Japanese Yen (JPY) has strengthened against its major currency peers on Thursday ahead of the Bank of Japan's (BoJ) monetary policy outcome on Friday. The USD/JPY pair is down 0.35% to near 155.75, with market experts anticipating a 25 basis point hike in interest rates to 1.25%. This move would not be surprising, as the BoJ's decision looks like a foregone conclusion, according to DBS Group Research economist Eugene Leow.

Leow notes that investors are now focused on the tone of the central bank's communication, rather than the rate hike itself. The market expects the BoJ to provide hawkish guidance on its policy outlook, which could lead to a stronger Yen.

The National Consumer Price Index (CPI) data for August will also be released before the policy announcement on Friday, providing further insight into the BoJ's decision-making process.