Yen Under Pressure Amid Global Rate Decisions

The yen continues to face pressure due to global interest rate differentials, as the Bank of Japan is expected to tighten policy. In contrast, the Federal Reserve is anticipated to cut rates. The yen's weakness against other currencies like the euro and the Aussie prompts market speculation ahead of key central bank meetings.

The yen struggled on Wednesday following a surprising overnight drop, impacted by widening interest rate differentials between Japan and other nations, despite expectations of the Bank of Japan tightening policy next week.

Meanwhile, the dollar remained stable as global currency markets paused for a critical Federal Reserve policy decision, anticipated to result in a rate cut, marking one of the institution's most contentious meetings. The yen had recently slipped to 156.82 per dollar, mirroring a similar decline against the euro.

Fiscal concerns and rising U.S. yields have further pressured the yen. Analysts, including Alex Hill of Electus Financial, anticipate continued yen weakness, as traders adjust positions in anticipation of forthcoming fiscal measures in Japan and potential shifts in the Bank of Japan's policy stance.

(With inputs from agencies.)