Yen Trapped in Upper 163 Range Ahead of BoJ and Fed Policy Decisions

The yen has been trading within a narrow range of the upper 163 zone against the dollar during Tokyo morning trading on the 29th. This price action is largely driven by investors waiting to assess the outcomes of monetary policy meetings by the Bank of Japan and the US Federal Reserve.

As of 10:00 a.m., the dollar-yen pair stood at 163.71-72 yen, with a slight 0.07 yen move toward yen strength and dollar weakness compared to the same time the previous day.

A foreign exchange broker noted that 'the impact of the earthquake that struck Kumamoto has not really manifested in the market at this point,' highlighting how interest in monetary policy is currently taking precedence over geopolitical risk.