Overview

• The Japanese yen rose slightly after Bank of Japan (BOJ) policymakers signaled growing support for a potential rate hike in the near future.
• The BOJ has maintained its interest rate at 0.25%, citing the need to analyze wage trends and the economic impact of the incoming U.S. administration led by President-elect Donald Trump.
• Japan's central bank announced a reduction in monthly Japanese government bond purchases, cutting an additional 410 billion yen starting January 2025.
• The yen remains near a five-month low against the U.S. dollar, which has surged due to elevated U.S. Treasury yields and a hawkish Federal Reserve stance on interest rate cuts.
• Japanese officials, including Finance Minister Katsunobu Kato, have reiterated their readiness to intervene in currency markets to counter excessive yen depreciation.