Yen Stabilizes Amid Hawkish Fed Outlook and Japan Rate Hike

The Japanese yen stopped its decline against the US dollar on Thursday after three consecutive sessions of losses. The dollar's strength was mainly due to the Federal Reserve's latest policy decision, which saw interest rates rise for the first time in three years and signal further tightening this year to combat inflation.

The Bank of Japan is expected to raise borrowing costs on Friday, with another increase anticipated by the end of January. This move could potentially support the yen, but its impact may be limited given the dollar's current momentum.

Oil prices eased amid hopes that Saudi Arabia can restore energy flows through its East-West pipeline, which has been affected by recent disruptions.