Overview
- The yen trades near 156.7 per dollar after an overnight tumble and remains pinned close to a record low versus the euro.
- The dollar is broadly steady, with the dollar index near 99.23, as investors await a Federal Reserve decision widely expected to deliver a 25-basis-point cut.
- Analysts warn the post-meeting press conference could jolt markets, with BNY’s John Velis calling Chair Jerome Powell’s tone a potential wild card.
- Pricing points to a 25-basis-point Bank of Japan hike next week, and traders are focused on Governor Kazuo Ueda’s guidance for the policy path.
- State Street reports neutral positioning in dollar/yen alongside buying of euro/yen and Aussie/yen, while the Australian dollar holds near a three-month high after hawkish remarks from RBA Governor Michele Bullock.