Overview
- The yen traded in the low-¥158 per dollar range on Wednesday, with Tokyo quotes near ¥158.43–44 and New York rates around ¥158.17–158.27.
- Tokyo's Nikkei 225 fell about ¥648 to 70,035.71 on profit-taking after an unusually large two-day advance of roughly ¥2,400.
- Market participants said Governor Kazuo Ueda's recent remarks did not signal an imminent rate increase, which reduced expectations for near-term BOJ tightening.
- Traders said dollar/yen flows reflected the Japan–U.S. interest-rate gap, and other currencies moved in step with the yen with the euro near ¥178.22–178.23.
- Investors are positioning ahead of the Oct. 29–30 BOJ meeting and watching upcoming U.S. economic data for fresh catalysts that could drive renewed currency and stock volatility.